@techreport{NBERw16462, title = "Government, Openness and
Finance: Past and Present", author = "Panicos O. Demetriades and
Peter L. Rousseau", institution = "National Bureau of Economic
Research", type = "Working Paper", series = "Working Paper
Series", number = "16462", year = "2010", month = "October", doi
= {10.3386/w16462}, URL = "http://www.nber.org/papers/w16462",
abstract = {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 developmen