This study investigates bidirectional causality between governance and financial development using panel data of 101 countries from 1984 to 2013. The financial development–governance nexus is explored using econometric methods robust to cross-sectional dependence, and the relationship between different levels of development and openness is analyzed. Long-run equation estimates show clear evidence that financial development positively affects governance, and this positive impact is found to be robust to three different measures of governance. Further analysis shows that improving governance quality has a positive effect on financial development, while Granger causality tests demonstrate bidirectional causality between financial development and the governance measures. Finally, the impact of financial development on governance is dependent on a country’s level of development and openness. These findings underscore the crucial role of financial development in bringing about good governance reforms and economic growth that, in turn, can further develop the financial sector. As such, a symbiotic and synergistic relationship can persist between good governance, growth, and financial development. The findings provide significant motivation for policymakers to encourage openness and financial sector development to lift the standard of living, especially in emerging economies.

本研究使用 1984 年至 2013 年 101 个国家的面板数据调查治理与金融发展之间的双向因果关系。使用对横截面依赖稳健的计量经济学方法探索金融发展与治理之间的关系，以及不同发展水平和金融发展水平之间的关系。开放性进行了分析。长期方程估计显示了明确的证据表明金融发展对治理有积极影响，并且发现这种积极影响对三种不同的治理措施是稳健的。进一步分析表明，提高治理质量对金融发展具有正向影响，而格兰杰因果检验则表明金融发展与治理措施之间存在双向因果关系。最后，金融发展对治理的影响取决于一个国家的发展和开放水平。这些发现强调了金融发展在带来良好治理改革和经济增长方面的关键作用，而这反过来又可以进一步发展金融部门。因此，良好治理、增长和金融发展之间可以保持共生和协同的关系。调查结果为政策制定者鼓励开放和金融部门发展以提高生活水平提供了重要动力，尤其是在新兴经济体。良好治理、增长和金融发展之间可以保持共生和协同的关系。调查结果为政策制定者鼓励开放和金融部门发展以提高生活水平提供了重要动力，尤其是在新兴经济体。良好治理、增长和金融发展之间可以保持共生和协同的关系。调查结果为政策制定者鼓励开放和金融部门发展以提高生活水平提供了重要动力，尤其是在新兴经济体。