Table 3 Pairwise correlation matrix... | Emerald Publishing

Table 3

Pairwise correlation matrix

Variable	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)	(19)
Financial development (1)	1
Institutional quality index (2)	0.61	1
Corruption control (3)	0.52	0.81	1
Gov't effectiveness (4)	0.68	0.86	0.86	1
Political stability (5)	0.27	0.64	0.72	0.66	1
Regulatory quality (6)	0.66	0.84	0.82	0.92	0.64	1
Rule of law (7)	0.58	0.84	0.90	0.91	0.78	0.88	1
Voice and accountability (8)	0.61	0.79	0.71	0.75	0.63	0.73	0.81	1
Bank Z-score (9)	0.37	0.15	0.05	0.22	−0.13	0.18	0.14	0.20	1
Bank liquid reserve (10)	−0.22	0.02	0.04	−0.07	0.10	−0.11	−0.02	−0.13	−0.15	1
GDP growth (11)	−0.12	0.00	−0.02	0.01	−0.05	−0.03	−0.04	−0.01	−0.10	0.03	1
Inflation (12)	0.00	0.04	−0.02	0.01	−0.13	−0.04	−0.01	0.02	−0.08	0.19	0.02	1
Financial liberalization (13)	0.78	0.61	0.61	0.70	0.46	0.69	0.70	0.66	0.33	−0.21	−0.15	−0.08	1
Financial freedom (14)	0.38	0.49	0.48	0.62	0.36	0.62	0.52	0.45	0.23	0.06	−0.01	−0.09	0.41	1
Trade liberalization (15)	0.24	0.22	0.38	0.23	0.40	0.25	0.37	0.35	−0.06	0.03	−0.04	−0.09	0.45	0.17	1
Foreign direct investment (16)	0.10	0.21	0.24	0.19	0.13	0.20	0.24	0.15	0.06	0.15	−0.01	0.06	0.13	0.12	0.09	1
Domestic credit (17)	0.94	0.57	0.49	0.64	0.29	0.64	0.55	0.57	0.33	−0.33	−0.13	−0.09	0.82	0.35	0.21	0.09	1
Macroeconomic uncertainty (18)	−0.12	−0.18	−0.13	−0.21	−0.10	−0.21	−0.18	−0.13	−0.10	0.10	0.17	0.03	−0.15	−0.17	0.11	−0.10	−0.13	1
Inflation uncertainty (19)	−0.14	−0.07	−0.09	−0.16	0.00	−0.14	−0.09	−0.01	−0.18	0.00	−0.06	0.22	−0.08	−0.27	−0.02	−0.14	−0.10	0.16	1

Variable	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)	(14)	(15)	(16)	(17)	(18)	(19)
Financial development (1)	1
Institutional quality index (2)	0.61	1
Corruption control (3)	0.52	0.81	1
Gov't effectiveness (4)	0.68	0.86	0.86	1
Political stability (5)	0.27	0.64	0.72	0.66	1
Regulatory quality (6)	0.66	0.84	0.82	0.92	0.64	1
Rule of law (7)	0.58	0.84	0.90	0.91	0.78	0.88	1
Voice and accountability (8)	0.61	0.79	0.71	0.75	0.63	0.73	0.81	1
Bank Z-score (9)	0.37	0.15	0.05	0.22	−0.13	0.18	0.14	0.20	1
Bank liquid reserve (10)	−0.22	0.02	0.04	−0.07	0.10	−0.11	−0.02	−0.13	−0.15	1
GDP growth (11)	−0.12	0.00	−0.02	0.01	−0.05	−0.03	−0.04	−0.01	−0.10	0.03	1
Inflation (12)	0.00	0.04	−0.02	0.01	−0.13	−0.04	−0.01	0.02	−0.08	0.19	0.02	1
Financial liberalization (13)	0.78	0.61	0.61	0.70	0.46	0.69	0.70	0.66	0.33	−0.21	−0.15	−0.08	1
Financial freedom (14)	0.38	0.49	0.48	0.62	0.36	0.62	0.52	0.45	0.23	0.06	−0.01	−0.09	0.41	1
Trade liberalization (15)	0.24	0.22	0.38	0.23	0.40	0.25	0.37	0.35	−0.06	0.03	−0.04	−0.09	0.45	0.17	1
Foreign direct investment (16)	0.10	0.21	0.24	0.19	0.13	0.20	0.24	0.15	0.06	0.15	−0.01	0.06	0.13	0.12	0.09	1
Domestic credit (17)	0.94	0.57	0.49	0.64	0.29	0.64	0.55	0.57	0.33	−0.33	−0.13	−0.09	0.82	0.35	0.21	0.09	1
Macroeconomic uncertainty (18)	−0.12	−0.18	−0.13	−0.21	−0.10	−0.21	−0.18	−0.13	−0.10	0.10	0.17	0.03	−0.15	−0.17	0.11	−0.10	−0.13	1
Inflation uncertainty (19)	−0.14	−0.07	−0.09	−0.16	0.00	−0.14	−0.09	−0.01	−0.18	0.00	−0.06	0.22	−0.08	−0.27	−0.02	−0.14	−0.10	0.16	1

Source(s): Authors’ computation