Results improve somewhat when considering the ratio of trading domestically to
GDP (Table 4). Here, inflation is generally negatively, and statistically significant, related
to trading activity. Also, shareholders rights affects positively trading. But the law and order variable takes on a negative sign, which is sometimes also statistically significant.
The liberalization dummies and trading costs variables are again not statistically
significant. The fits for tk,e regressions of the trading variables are in general much lower
than those for the stock market development regressions are, maybe as other institutional
differences explain most of a country's stock trading intensity.