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Globalisation Financière, Croissance et effets de seuil : Le Cas des pays en développement Les moins avancés

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  • Brahim Gaies

Abstract

In this article, we examine the impact of financial globalization on long-term economic growth. We test whether effects from different types of financial globalization: investment-globalization, indebtedness-globalization and financial globalization (investment plus indebtedness), are dependent until certain thresholds of macroeconomic stability and GDP per capita growth are attained. Estimates are performed with the two-step GMM system technique for dynamic panel data models for 72 developing countries from 1972 to 2011. Also, we use time-median calculation to capture the threshold effects in our sample. Our main results are the following. Financial globalization has a favorable impact on growth with the presence of minimum threshold effects in terms of macroeconomic stability and GDP per capita growth. A contrario, indebtedness-globalization negatively affects growth with the presence of minimum threshold effects in terms of macroeconomic stability and GDP per capita growth. If these thresholds are attained, they can decrease the negative impact of indebtedness-globalization and ultimately neutralize it. Finally, investment-globalization promotes economic growth with the potential existence of a maximum threshold effect in terms of GDP per capita growth. This maximum threshold corresponds to an inverted-U shape for the influence of investment-globalization on growth.

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  • Brahim Gaies, 2017. "Globalisation Financière, Croissance et effets de seuil : Le Cas des pays en développement Les moins avancés," EconomiX Working Papers 2017-25, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2017-25
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    More about this item

    Keywords

    Globalization; Macroeconomic Instability; Threshold;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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