The impact of international financial integration on economic growth: New evidence on threshold effects

2014 ◽  
Vol 42 ◽  
pp. 475-489 ◽  
Author(s):  
Jinzhao Chen ◽  
Thérèse Quang
Keyword(s):  
Economic Growth ◽  
Financial Integration ◽  
Threshold Effects ◽  
International Financial Integration ◽  
The Impact ◽  
New Evidence

International Financial Integration, Investment and Economic Performance in Sub-Saharan African Countries

2011 ◽  
Vol 11 (4) ◽  
pp. 1850239 ◽  
Author(s):  
Abdullahi D. Ahmed
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Market Integration ◽  
Capital Investment ◽  
Financial Integration ◽  
Real Economy ◽  
African Countries ◽  
Financial Openness ◽  
International Financial Integration ◽  
The Impact

This paper examines the issues of international and regional financial integration and its impact taking a sample 25 SSA countries. The research tests both the direct and indirect channels through which the impact of financial integration works and is transmitted to the real economy. Directly, it is argued that financial openness affects economic growth through enabling access to foreign financial markets, increasing financial service efficiency and helping in diversification of risks and consumption smoothing. Thus while inducing additional capital investment, it also fosters macroeconomic discipline. Indirectly, the process of international financial integration facilitates the transfer of technological know-how, promotes trade and enhances specialization. While financial openness of recent years has laid a strong foundation to consolidate financial integration between regions and with international financial markets, we do not observe a robust link between financial openness and economic growth in SSA region. The empirical analysis considers the possibility of a positive indirect effect, and we report evidence in favour of the indirect transmission root. From our results, we observe a positive and statistically significant association between international financial integration and financial development under all its selected indicators. This finding suggests that financial capital market integration aids growth indirectly through promoting domestic financial markets. The study reports evidence suggesting that good institutions, higher level of human capital, and stable macroeconomic environment play an important role in mitigating the negative impacts of international financial openness.

scholarly journals International Financial Integration and Economic Growth

10.3386/w9164 ◽  
2002 ◽  
Author(s):  
Hali Edison ◽  
Ross Levine ◽  
Luca Ricci ◽  
Torsten Slok
Keyword(s):  
Economic Growth ◽  
Financial Integration ◽  
International Financial Integration

scholarly journals Role of International Financial Integration on Financial Market Development of Euro Area Countries

2019 ◽  
pp. 91-100
Author(s):  
Irfan Alam
Keyword(s):  
Financial Market ◽  
Euro Area ◽  
Financial Integration ◽  
Price Volatility ◽  
Share Price ◽  
Market Development ◽  
International Financial Integration ◽  
Financial Market Development ◽  
The Impact

The aim of this paper is to investigate the role of international financial integration into financial market development of Euro area countries. Annual dataset from 1998 to 2014 by using multiple regression method. The study focuses on financial integration on determining the impact on financial market development. Overall results confirming the significant positive and negative effect of international financial integration (Stock traded& share price and stock turnover ratio, respectively) while insignificant positive andnegative effect of financial integration (financial assets and liabilities and share price volatility, respectively) on financial market development. The finding provides strong evidence of achieving higher financial market development due to the drivers of financial integration.

scholarly journals Pooled Mean Group Approach to Test the Determinants of Financial Integration: Evidence From OECD and G20 Countries

2019 ◽  
Vol 10 (3) ◽  
pp. 366
Author(s):  
Ahliman Abbasov
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Integration ◽  
Financial Liberalization ◽  
Global Financial Crisis ◽  
Positive Impact ◽  
Trade Integration ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the role of financial liberalization, trade integration, economic growth and global financial crisis on financial integration level of selected OECD and G20 countries during the period of 2000-2016. PMG technique has been implemented to estimate the ARDL model. Regression results suggest a statistically significant long run co-integration relationship between financial integration and independent variables. Analysis also concludes that there are both long run and short run positive impact of trade integration level on financial integration level. The study also concludes that the global financial crisis has had a negative influence on global financial integration both in the short run and long run. But according to the regression results the impact of financial liberalization on the actual financial integration level of the countries only appears in the long run. Results also indicate that positive impact of economic growth on financial globalization level appears only in the long run.

scholarly journals Financial integration and macroeconomic volatility in Zimbabwe

2020 ◽  
Vol 22 (2) ◽  
pp. 229-248
Author(s):  
Richard Makoto
Keyword(s):  
Capital Flows ◽  
Financial Integration ◽  
Negative Impact ◽  
Content Type ◽  
Financial Repression ◽  
Macroeconomic Volatility ◽  
International Financial Integration ◽  
Negative Effect ◽  
Short Time ◽  
The Impact

PurposeMany developing countries are pursuing policies that foster international financial integration after decades of financial repression. Greater access to foreign financial markets may have both positive and negative impact on the performance of the economy. One of the concerns of international financial integration is macroeconomic volatility which may affect both monetary and real sectors. Zimbabwe has chosen to pursue a financial liberalization strategy in the form of imperfect financial integration following periods of excessive domestic shocks. An upsurge of capital flows since the epic of economic crisis in the 2000s has been observed with varying macroeconomic impacts. This study empirically examines the impact of partial international financial integration on the volatility of macroeconomic variables.Design/methodology/approachThe study utilized an ARDL Model suggested by Pesaran et al., (2003) which is appropriate for short time periods.FindingsThe results show that financial integration has a negative effect on output volatility while insignificant on consumption volatility.Practical implicationsThe study recommends that the country should gradually liberalize the capital account and properly sequence financial development reforms in order to minimize losses from global financial integration.Originality/valueThe study used time series for Zimbabwe during a period of external imbalance, repeated economic cycles, sudden stops in capital flows and limited scope of imperfect financial integration. Findings in such an economy will be a referral for policymakers in other economies that would want to pursue international financial integration.

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