Impact of Financial Development, Financial Liberalization and Economic Growth on Financial Instability: Evidence from Panel Data

Financial instability refers to the situation when financial system faces some disturbances and volatility. There are important factors that can have a significant influence on stability or of sector. The main objective this study is examine impact sector development, liberalization, GDP growth rate instability. Using data from 53 countries 2000 2016 employing battery estimation techniques consisting fixed effect, random dynamic panel, GMM, finds development liberalization accentuate also economic dampens it. Furthermore, relationship robust variety controls like monetary independence index, exchange stability, law order, government expenditure. policy implication straightforward demand caution.