scholarly journals FINANCE AND INEQUALITY: HOW DOES GLOBALIZATION CHANGE THEIR RELATIONSHIP?

2013 ◽  
Vol 18 (5) ◽  
pp. 1091-1128 ◽  
Author(s):  
Takuma Kunieda ◽  
Keisuke Okada ◽  
Akihisa Shibata

This research demonstrates that international financial integration changes the way in which financial development affects inequality within a country. Specifically, both cross-country analysis and dynamic panel data analysis using data collected from more than 100 countries provide evidence indicating that if the financial market of a country is strongly closed to the world market, financial development narrows inequality within that country, whereas if the financial market of a country is strongly open to the world market, financial development widens inequality within that country. Our theoretical framework provides a possible explanation for our empirical findings.

2017 ◽  
Vol 11 (2) ◽  
pp. 143-166
Author(s):  
Niranjan R.

The nexus between international financial integration and economic growth continues to be one of the most debated issues among macroeconomists, and these debates often raise several issues from the theoretical and policy perspectives. Financial integration can catalyse financial development, improve governance and impose discipline on macro-policies. However, in the absence of a basic pre-existing level of supporting conditions, financial integration can aggravate instability (Khadraoui, 2010). In addition, economic theory suggests that increased financial openness intensifies macroeconomic instability. This article investigates the financial integrational effects on macroeconomic instability in terms of output, consumption and investment volatility by employing the vector error correction model (VECM) with empirically reasonably parameters for an emerging economy, India, for the period 1989–2014. From the results, it is evident that financial openness has had a significant effect on output, consumption and investment volatility. Financial development has had a statistically significant negative effect on output, consumption and investment volatility. Similarly, trade openness and terms of trade significantly influence output, consumption and investment volatility. JEL Classification: F36, F41, F43, E32


2020 ◽  
Vol 6 (5) ◽  
pp. 216-220
Author(s):  
Tetiana Stroiko ◽  
Vitaly Burkun ◽  
Andrii Mulenko

The purpose of this work is the appropriate use of technology in the life of every business entity, organization, and financial institution. With the growth of technology, the question of their appropriate use has arisen. The state is the key factor of influence and the main body that regulates the activities of innovation and information. The development of the IT sector is the key to sustainable financial development of the country, which contributes to the inflow of finance to the country. When informatizing society, the main attention is paid to a set of measures aimed at ensuring the full use of reliable, comprehensive and timely knowledge in all human activities. Information technology in the financial sector is a kind of mechanism that provides the whole process of efficient and operational work. After all, the process of economic formation acquires a new meaning. It becomes more productive and more coordinated. In modern conditions, information technologies that provide optimization of activities, integration and communication with the external environment are becoming more widespread and used in today's dynamic market. Over the past 3 years, the IT sector has become one of the important sectors for the export of services in Ukraine. In 2019, it brought in more than 5 billion USD in exports per year. An increase in the share of exports leads to an increase in the share of GDP, so the development of the IT sector should be a priority for sustainable financial development of the country. Namely, facilitating means the introduction of small and medium-sized IT enterprises. Creating competitive software for finance and accounting, namely EPR and CRM systems, facilitates the management of human resources, assets, supplies, and production of the final product. The world market leaders are such representatives as: Oracle, Salesforce, SAP, QuickBooks, 1C etc. Important areas of using IT technologies are also facilitating the exchange of information in the process of working on projects, accelerating document flow, improving planning efficiency, implementation of general business and marketing strategy, finance, HR-strategy, simplification of brand promotion, interaction with target audience , strengthening control over financial costs, etc. In addition, these systems help to set tasks, deadlines, results. The paper covers the assessment of the general state of development of e-commerce in Ukraine. The main criteria for the development of information technology are: information services, computer and telecommunications services. The dynamics of foreign trade in these types is highlighted and the most important consumer countries that use the services of Ukrainian specialists in the labor market are studied.


Author(s):  
Irfan Alam

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.


Author(s):  
Natalia Kuznetsova ◽  
Zhanna Pisarenko ◽  
Liudmila Lobanova

The paper examines financial conglomerates as an innovative form of integration from different sec-tors of the world financial market. The authors reveal their features, advantages and risks. The goal of the paper is an empirical cross-country analysis of financial conglomerate identification by finan-cial markets regulators. There is no common approach to such a consolidated entity as financial con-glomerate among both researchers and regulators. The blurring of the dividing lines between financial sectors is of great importance too. The development of a conceptual apparatus, the theory and anal-ysis of a financial conglomerate has become of considerable importance.


2022 ◽  
Vol 17 (1) ◽  
pp. 267-278
Author(s):  
Farzan Yahya ◽  
◽  
Ghulam Abbas ◽  
Muhammad Hussain ◽  
Muhammad Waqas ◽  
...  

The present study investigates the effect of financial development on sustainable competitiveness and its components (natural capital, resource intensity, and social cohesion) in the Arctic region. We employ bank-based, stock-market based, and composite index to measure financial development. To deal with endogeneity bias, system GMM is utilized. The results show a positive and significant effect of financial development on sustainable competitiveness. The estimates also assert that financial development encourages resource efficiency and social cohesion in the region. In contrast, we find the negative effect of financial development on natural capital. This suggests that overexploitation of natural resources may provide short-term benefits to the local and regional communities but it may threaten the long-term sustainability of the Arctic. Thus, the financial sector should be guided to support financing and investing activities in alternative eco-friendly technologies and ventures for reducing excessive natural resource utilization.


Ekonomika ◽  
2020 ◽  
Vol 66 (3) ◽  
pp. 73-80
Author(s):  
Sanja Dončić

The paper examines the existence of a causal relationship in Grangers' sense between the movement of Bitcoin prices and the price of gold at the global financial market, in order to answer the question whether it is possible to predict the movement of the Bitcoin price based on the movement of the price of gold in the world market, but also vice versa. The survey was conducted from January 1, 2019 to December 1, 2019. In the research was used the Granger causality test (1969). The research results show that historical data on the movement of gold prices in the world market cannot be used to predict the change in value and price movements of Bitcoin. On the other hand, the survey results indicate the possibility of a reliable application of the use of historical data on the movement of value and price of Bitcoin.


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