Impact of Financial Globalization on Financial Development in Developed and Developing Countries
Impact of Financial Globalization on Financial Development in Developed and Developing Countries
Author(s): Müslüm Polat, Enes Yildiz, Mesut AslanSubject(s): National Economy, Supranational / Global Economy, Business Economy / Management, Micro-Economics, Financial Markets, Socio-Economic Research
Published by: Vysoká škola ekonomická v Praze
Keywords: Financial globalization; financial development; developing countries; developed countries; AMG;
Summary/Abstract: This study examines the impact of financial globalization on financial development from 1982 to 2019, differentiating between developed and developing countries. It analyzes sub-indices of financial development using the Durbin–Hausman panel cointegration test and the augmented mean group (AMG) estimator. Findings reveal a long-run association between financial development and financial globalization in both groups, with statistically significant positive coefficients observed only in developed countries. This suggests the positive effect of financial globalization on financial development is stronger in developed countries and highlights the importance of aligning financial decisions with a country's development level.
Journal: Politická ekonomie
- Issue Year: 72/2024
- Issue No: 4
- Page Range: 702-726
- Page Count: 25
- Language: English
