World Economic Growth Evaluating in the Process of Financial Globalization

Document Type : Research Article

Authors

Abstract

The world economy has witnesses several rounds of globalization within recent decades. Very recently, various global economic relationships can be found that have been deeply in progress. Financial relations among countries, for example, have gone up in a high rate of growth. This development which is financial globalization is a process that increases world communications through international financial and capital flows.
   Basically, this paper addressed the question: how has financial globalization affected the world economic growth? To this end, we use a new quantitative approach, so-called “program evaluation”, to explore and evaluate such effect. Accordingly, we have used the multiple matching to evaluate the responsiveness of the world economic growth to the developments of financial globalization (e.g. currency union). The empirical results for 2004, which has been selected randomly, show a significant and positive treatment effect of the currency union implementation on growth of the countries worldwide. 

Keywords

References

اسلاملوئیان،کریم (1381)؛ «جهانی­سازی، رژیم ارزی، رشد تولید و گسترش پولی در دیگر کشورها و مقایسه آن با ایران»، دوازدهمین کنفرانس سیاست­های پولی و ارزی بانک مرکزی جمهوری اسلامی ایران.
طیبی، سیدکمیل؛ شیخ بهایی، آزیتا و گوگردچیان، احمد (1387)؛ «تحلیلی بر رشد اقتصادی در کشورهای عضو سازمان کنفرانس اسلامی (OIC) با تأکید بر تجارت و سرمایه انسانی»، اولین همایش اقتصاد اسلامی، دانشگاه مشهد.
نادری، مرتضی (1382)؛ «توسعه مالی، بحران های مالی و رشد اقتصادی»، فصلنامه پژوهش­های اقتصادی ایران، شماره 15: 62-37.
Abadie, A & Imbens, G(2002); "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects", NBER Technical Working Paper, No. 283.
Das, D. K(2006); "Globalization in the World of Finance: An Analytical History", Global Economy Journal, Vol. 6, No. 1.
Dollar, D & Carry, A(2002); "Growth is Good for Poor", Journal of Economic Growth, Vol. 7, pp. 195-225.
Goldsmith, R(1696); Financial Structure and development, New Haven, Yale University Press.
Heckman, J & Ichimura, H & Smith, J & Todd, P(1998); "Characterizing Selection Bias Using Experimental Data", Econometrica, Vol. 66, No. 5, pp. 261-294.
Imbense, G. W(2004); "Non-Parametric Estimation of Average Treatment Effects under Exogeneity: a Review", The Review of Economics and Statistics, Vol. 86, No. 1, pp. 4-29.
Krugman, P. R & Obstfeld, M(2000); International Economics: Theory and Policy, 5th Edition, New York: Addison-Wesley.
Lee, M(2005); Micro-Economics for Policy Program and Treatments Effects, New York: Oxford University Press Inc.
McKinnon, R. I(1963); "Optimum Currency Areas", American Economic Review, Vol. 53, pp. 717-724.
Mundell, R. A(1961); "A Theory of Optimum Currency Areas", American Economic Review, Vol.  51, pp. 657-665.
Penn World Tables: http://pwt.econ.uepenn.edu.
Prasad, E (2003); "Effect of Financial Globalization on Developing Countries", Some Empirical Evidence, International Monetary Fund.
Rose, A(2001); "Common Currency Areas in Practice, Revisiting the Case for Flexible Exchange Rates", Prepared for the Bank of Canada Conference.
Rose, A(2006); "Currency Unions", for the New Palgrave.
Rose, A & van Wincoop, E(2001); "National Money as a Barrier to International Trade: The Real Case for Currency Union", American Economic Review, pp. 386-90.
Shaw, E. S(1973); Financial Deepening in Economic Development, New York, Oxford University Press.
WDI: World Development Indicators CD-ROM.
Zhao, Z(2004); "Using Matching to Estimate Treatment Effects: Data Requirements, Matching Metrics, and Monte Carlo Evidence", The Review of Economics and Statistics, Vol. 86. PP 91-107.
Journal of Applied Economics Studies in Iran
Volume 3, Issue 9 - Serial Number 9
March 2014
Pages 205-221

Files

Share

How to cite

Statistics