• ÇaÄŸrı Levent Uslu Department of Economics, Yeditepe University, Kayisdagi, 34755, Istanbul, Turkey
  • Ebru Tomris AydoÄŸan Department of Economics, Yeditepe University, Kayisdagi, 34755, Istanbul, Turkey
  • Natalya Ketenci Department of Economics, Yeditepe University, Kayisdagi, 34755, Istanbul, Turkey
Keywords: Economic growth, financial development, trade openness, emerging markets, cointegration test, structural shifts


The panel group of 21 emerging countries is examined in the paper by employing the growth model. The impact of financial development and trade openness on economic development of emerging countries is estimated for the period 1995-2013 on the quarterly basis. The paper examines the presence of structural breaks in series and how the impact on financial development and trade openness on economic growth of emerging countries varies in the presence of structural shifts. Recent panel techniques are employed in this study, such as the Westerlund (2006) panel cointegration test and Im et al. (2005) unit root test that allow presence of structural shifts. Estimation results demonstrated that exposion of emerging countries to structural shifts significantly decrease the impact of financial development and trade openness on economic development


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