Impact of Financial Infrastructure on Financial Development

Abstract

Financial development is a major factor that determines the economic situation and income level in different countries. Improving the financial infrastructure is a prerequisite for a more developed financial sector and its impact is an important issue to explore. For this purpose, data from 149 countries for the period 2010 - 2017 are analyzed, outlining the main trends in the development of financial infrastructure around the world. The econometric analysis of panel data shows that financial infrastructure has a significant positive impact on financial development. The main conclusion is that the better financial infrastructure will have a beneficial effect on the financial system and economic development.