Cha, H. E.; Wang, Doo Kyun; Berg-Ridenour, Sherryl - In: Economies : open access journal 13 (2025) 3, pp. 1-23
The literature on financial openness is rich, yet the selection of a suitable financial index remains a challenge. In this paper, Principal Component Analysis (PCA) and Factor Analysis (FA) are utilized to reduce the dimensionality of five publicly available financial openness indices. The...