TY  - JOUR
AU  - Demetriades,Panicos O.
AU  - Rousseau,Peter L.
TI  - Government, Openness and Finance: Past and Present
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16462
PY  - 2010
Y2  - October 2010
UR  - http://www.nber.org/papers/w16462
L1  - http://www.nber.org/papers/w16462.pdf
N1  - Author contact info:
Panicos O.. Demetriades
Department of Economics
University of Leicester
University Road
Leicester LE1 7RH
United Kingdom
E-Mail: pd28@leicester.ac.uk

Peter L. Rousseau
Department of Economics
Vanderbilt University
VU Station B #351819
2301 Vanderbilt Place
Nashville, TN 37235-1819
Tel: 615/343-2466
E-Mail: peter.l.rousseau@vanderbilt.edu
AB  - We explore the role of government in the nexus of finance and trade starting from the earliest days of organised finance in England and then broadening the analysis to 84 countries from 1960 to 2004. For 18th century England, we find that the government expenditures and international trade did have a positive long-run effect on financial development when measured as the value of private loans issued at the Bank of England. For the wider panel of countries and more recent data, we find that government expenditures and trade have positive effects on financial development for countries that are in the mid-ranges of economic development as measured by their per capita incomes, but have little effect for poor countries and strongly negative effects for the wealthiest ones.
ER  -