Further, the results revealed that the impact of trade openness on stock market development is mixed.

Modern Economy

This paper focuses on the impact of the concurrent liberalization of current and capital accounts and quality institutions on stock market development. Using annual data from 1996-2013 for a panel of fifty three (53) developed and developing countries and utilizing dynamic GMM estimators, the results show that banking sector development, economic growth, and the interaction term affect stock market development positively. The paper finds that capital account liberalization affects market development negatively, but the effect of capital account liberalization on market development is contingent on the level of economic growth and development. Further, the results revealed that the impact of trade openness on stock market development is mixed. The research finds negative impact of institutional factors on market development. Finally, the paper does not find support in favour of simultaneous openness hypothesis.

An Evaluation of Simultaneous Openness Hypothesis in the Context of Stock Market Development: Evidence from a Panel of Fifty Three Countries Based a GMM Study