This paper investigates the causal relationship between financial development and export performance of firms in manufacturing sector in Turkey over the 1991-2012 period. After constructing banking sector and stock market financial development indexes and grouping the firms according to...

We investigate how the relative contribution of external factors to stock price movements varies with the degree of financial development. We find that financial development makes stock markets more susceptible to external influences (both financial and macroeconomic). Interestingly, this effect...