Data for: Financial development determinants, role of market restrictiveness

The data allow to investigate the relationship between financial development as proxied by financial development indexes introduced by Svirydzenka (2016) and institutional and regulatory variables including Polity2, legal rights, credit information and financial Services Trade Restrictiveness Indexes. Other explaining variables are used as well including economy size (GDP(ln)), financial depth (as proxied by Credit provided by banks % GDP) and financial access (as proxied by Commercial Bank branches). The data are gathered from different sources and include 180 countries. Traditional explaining factors such as economy size and credit depth are found to positively and significantly impact financial institutions and markets development alike. Political institutions have broader impact on financial development than banking credit regulation. Interestingly, financial restrictiveness is found to negatively and significantly affect all financial institutions and markets development aspects, except financial institutions’ returns. Our results suggest that financial services restrictiveness hinders market competition and financial development given financial institutions’ rent seeking behaviour.