The Linkage between Economic Growth and Openness: Does Financial Development Matter?
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Tarih
2019
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Purpose: Even though, the impact of trade openness on economic growth overwhelmingly hasbeen analyzed by researchers; the real effect still remains inconclusive and controversial in theliterature. The main objective of this study is therefore to find out whether the financialdevelopment has any role in determining the impact of trade openness on economic growthMethod: The study has employed dynamic panel data of 41 developing countries for the period1995-2014.Findings: this study could not find any effect of trade openness or financial development oneconomic growth. Rather, the study has found that interaction term representing the joint effectof financial development and openness has a negative effect on economic growth. Furthermore,the study has empirically proved that human capital and investments have positive effects oneconomic growth while inflation rate and global financial crisis worsen the economic growth.Discussion: The study has attributed this result to the willingness of investors to transfer theirfinancial capital outflows as trade barriers lowers and financial system gets deeper.
Açıklama
Anahtar Kelimeler
İşletme,İktisat,İşletme Finans
Kaynak
İşletme Araştırmaları Dergisi
WoS Q Değeri
Scopus Q Değeri
Cilt
11
Sayı
1
