DATASET (Do Remittance, FDI, and Economic globalization promote financial development?)

This data consists of remittance, FDI, economic globalization, and financial development dynamics between two region groups, namely: a high remittance and FDI receiving region (European and Central Asian region) and low remittance and FDI receiving region (Sub-Saharan African region) for the period of 1984-2016. These two regions include 44 countries, where 15 highly remittances and FDI receiving developing countries, and 29 less globalized developing countries.

          This study requires data on economic globalization and institutions. We have taken data from Gygli, et al. (2019), which is a newly, published KOF economic globalization index dataset in the International monetary fund. This index includes Trade Globalization and Financial Globalization. Trade-in goods, trade regulations, and trade in services, trade taxes, trade partner diversity, tariffs, and trade agreements are included under Trade Globalization. On the other hand, financial globalization is a combination of investment restrictions, portfolio investment, capital account openness, international debt, international Investment Agreements, international reserves, and international income payments. Institutional quality index datasets provided by the International Country Risk Guide (ICRG), which allowed us to test the hypothesis. A total of three control variables that are added to the main model have been proposed in this study, they are as follows, Real GDP per capita, Consumer price index (Inflation), and Gross fixed capital formation. All data are collected from the World Development Indicators and the International Monetary Fund.

Variables                                Definition                                              Units                                                 Source

FD                          Financial development index                             Index value                             International monetary fund

FI                              Financial institution index                                Index value                             International monetary fund

FM                              Financial market index                                  Index value                             International monetary fund

REM           Personal remittances received (% of GDP)               Percentage of GDP                  World Development Indicators

FDI        Foreign direct investment, net inflows (% of GDP)         Percentage of GDP                   World Development Indicators

EGLOB            KOF Economic Globalization index                        Index value                          International monetary fund (Gygli,                                                                                                                                                          Savina, Florian Haelg, Niklas Potrafke                                                                                                                                                              and Jan-Egbert Sturm, 2019)

INSQ         An institutional quality index(combining all                    Index value                           International Country Risk Guide

                  the variables like Government Stability,

                 Socioeconomic Conditions, Investment Profile,

                   Internal Conflict, External Conflict, Corruption,

               Military in Politics, Religious Tensions, Law and Order,

                 Ethnic Tensions, Democratic Accountability,

                 Bureaucracy Quality and make one index

                                  term by PCA)

GDP                        GDP per capita                                        Per capita as per constant 2010 US$       World Development Indicators

INF                       Inflation(GDP deflator)                                         Annual percentage                          World Development Indicators

GFCF                Gross fixed capital formation                                 Percentage of GDP                           International monetary fund