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The effects of national culture on financial sector development: Evidence from emerging and developing economies

Year: 2021

Type: article

Abstract: This study investigates the effects of national culture on financial sector development in emerging and developing economies. Prior literature on culture and finance has placed little focus on the multidimensionality of national culture and its potential implications for financial sector development. Therefore, this study contributes to the ongoing debate surrounding culture and finance by exploring broader cultural perspectives. The empirical findings show that national culture significantly explains cross-country differences in financial sector development. Various dimensions of national culture have a distinctive impact on financial sector development; for example, individualism and masculinity play boosting role, whereas uncertainty avoidance hampers it. The overall findings are reliable to a series of robustness checks and offer useful policy implications for governments, regulatory agencies, and other stakeholders.

Source: Borsa Istanbul Review

DOI: 10.1016/j.bir.2021.02.003

Authors: Muhammad Atif Khan, Lulu Gu, Muhammad Asif Khan, Natanya Meyer

Institutions: Zhongnan University of Economics and Law, University of Kotli, Azad Jammu and Kashmir, University of Johannesburg

Language: English

Topic: Culture, Economy, and Development Studies

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: