The effect of financial development in the economic globalization process in iran

Document Type : Research Article

Authors

Abstract

Globalization process for each country can be associated with benefits and harms. In the process of economic globalization, economic activity and changes in the definition is not confined to the borders of a country. Also, the role of financial development in the economic growth and private investment issues is undeniable; because economic growth depends on private investment and private investment depends on the development of the financial market. This paper intends to use the system of equations and GMM estimator examines the macroeconomic impact of financial development on Globalization process during the period 1965-2007. Also, in this paper, the variable domestic credit allocated to the private sector is used as an indicator of financial development. According to the result, increase of financial development can through expanding credit to private sector lead to increase private investment and economic growth; also, economic growth can increase export and import and lead to accelerate the globalization process. Therefore it can be said that financial development through growth channel will hasten the process of globalization.

Keywords

References

راستاد، مهدی و نیلی، مسعود (1388)؛ توسعه‌ی مالی و رشد اقتصادی: مقایسه‌ی کشورهای صادر کننده‌ی نفت و آسیای شرقی. فصلنامه‌ی برنامه و توسعه موسسه‌ی عالی آموزش و پژوهش مدیریت و برنامه­ریزی، دوره 3، شماره 3و4، 21-4.
سلمانی، بهزاد و امیری، بهزاد (1388)؛ توسعه مالی و رشد اقتصادی: مورد کشورهای در حال توسعه. فصلنامه اقتصاد مقداری (بررسی های اقتصادی سابق)، دوره 6، شماره 4، 125-145.
فخرحسینی، سیدفخرالدین و شهابی، علی ( 1386)؛ بررسی اثرتوسعه­ی بازار بورس بر رشد اقتصادی درایران. پژوهشنامه علوم انسانی و اجتماعی«علوم اقتصادی»، سال هفتم، شماره 24.
نظیفی، فاطمه. (1383)؛ توسعه­ی مالی و رشد اقتصادی در ایران. پژوهشنامه­ی اقتصادی، شماره 14، 97-129.
Anwar, S., & Nguyen, L. P. (2011); Financial development and economic growth in Vietnam. Journal of Economics and Finance, 35(3), 348-360.
Bangake, C., & Eggoh, J. C. (2011); Further evidence on finance-growth causality: A panel data analysis. Economic Systems, 35(2), 176-188.
Choong, C. K. (2012); Does domestic financial development enhance the linkages between foreign direct investment and economic growth? Empirical Economics, 1-16.
Hassan, M. K., Sanchez, B., & Yu, J. S. (2011); Financial development and economic growth: New evidence from panel data. The Quarterly Review of Economics and Finance, 51(1), 88-104.
Hoa, T. (2005); Modelling the Impact of China's WTO Membership on Its Investment and Growth: A New Flexible Keynesian Approach. WTO and World Trade, 251-265.
Hung, F. S. (2009); Explaining the nonlinear effects of financial development on economic growth. Journal of Economics, 97(1), 41-65.
Kendall, J. (2009); Local financial development and growth. World Bank Policy Research Working Paper Series, Vol.
Lee, C. C., & Chang, C. P. (2009); FDI, financial development, and economic growth: International evidence. Journal of Applied Economics, 12(2), 249-271.
Mahutga, M. C., & Smith, D. A. (2011); Globalization, the structure of the world economy and economic development. Social Science Research, 40(1), 257-272.
Mayanja, J. B. (2012); Determinants of Domestic Private Investment in Sub-Saharan African (SSA)
Countries: The Role of Foreign Direct Investment. Department of Economics Johannes Kepler University Linz Austria.
Mendoza, E. G., & Quadrini, V. (2010); Financial globalization, financial crises and contagion. Journal of Monetary Economics, 57(1), 24-39.
Mishkin, F. S. (2009); Globalization and financial development. Journal of development Economics, 89(2), 164-169.
Nyamongo, E. M., Misati, R. N., Kipyegon, L., & Ndirangu, L. (2011); Remittances, financial development and economic growth in Africa. Journal of Economics and Business, 64(3), 240-260.
Obadan, M. I. (2006); Globalization of finance and the challenge of national financial sector development. Journal of Asian Economics, 17(2), 316-332.
Oxelheim, L. (2010); Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks. Journal of Asian Economics, 21(1), 66-75.
Read, R. (2004); The implications of increasing globalization and regionalism for the economic growth of small island states. World Development, 32(2), 365-378.
 
 
 

Files

Share

How to cite

Statistics