Did financial development and international trade reinforce each other
and drive economic growth more than a century ago? We investigate these linkages
among 17 countries during the first wave of economic globalization (1850–1929).
Cross-country dynamic panels as well as VARs and VECMs for individual countries
indicate that financial development led both trade and growth at this time, while
trade largely responded to financial development.

• Financial Development, Trade Openness and Growth in the First Wave of Globalization