Relationship Between Globalization and Financial Development: An Empirical Study on Brics-T Countries

Abstract

The aim of this research is to investigate the relationship between financial development and economic globalization, social globalization and politic globalization index in BRICS-T countries for the 1990-2014 period. In the research two different development indicators -banking development and stock market development- were used. Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) were used as the estimators in the research. Also, causality test which was developed by Dumitrescu and Hurlin (2012) was used in the research. As a result of the analyses, it was determined that globalization had an impact on the financial development levels of BRICS-T countries. In addition, while causality relationship was determined from GDP to financial development indicators, causality relationship from financial indicators to GDP couldn’t be determined. Also, two-way causality was determined between politic globalization and financial development indicators. One-way causality relationship was determined from economic globalization and politic globalization to financial development indicators. The results of the research are important in terms of examining the effects of globalization on financial markets and explaining how the financial development levels of countries are affected by globalization. In this context, it contributes to politicians and policy makers in terms of creating globalization policies.

Keywords

• Globalization
• KOF index
• financial development
• banking
• stock market
• BRICS-T

Küreselleşme ve Finansal Gelişmişlik Arasındaki İlişki: Brics-T Ülkeleri Üzerine Ampirik Bir Çalışma

Abstract

Bu çalışmanın amacı finansal gelişmişlik ile ekonomik küreselleşme, sosyal küreselleşme ve politik küreselleşme endeksi arasındaki ilişkiyi BRICS-T ülkeleri çerçevesinde 1990-2014 dönemi için araştırmaktır. Çalışmada iki farklı gelişim göstergesi – bankacılık gelişimi ve menkul kıymetler piyasası gelişimi– kullanılmıştır. Çalışmada Augmented Mean Group (AMG) ve Common Correlated Effects Mean Group (CCEMG) tahmincilerinden yararlanılmıştır. Bunun yanında Dumitrescu ve Hurlin (2012) tarafından geliştirilen nedensellik testinden de çalışmada yararlanılmıştır. Analiz sonuçlarına göre, küreselleşmenin BRICS-T ülkelerinin finansal gelişmişlik düzeyinde etkili olduğu sonucuna ulaşılmıştır. Bunun yanı sıra GDP’den finansal gelişmişlik göstergelerine doğru bir nedensellik ilişkisi belirlenmişken finansal göstergelerden GDP’ye doğru bir nedensellik ilişkisi tespit edilememiştir. Aynı zamanda politik küreselleşme ve finansal gelişmişlik göstergeleri arasında iki yönlü bir nedensellik belirlenmiştir. Ekonomik ve politik küreselleşmeden finansal gelişmişlik göstergelerine doğru ise tek yönlü bir nedensellik tespit edilmiştir. Araştırma sonuçları küreselleşmenin finansal piyasalar üzerindeki etkilerini incelemesi ve ülkelerin finansal gelişmişlik düzeylerinin küreselleşmeden ne yönde etkilendiğini açıklaması bakımından önemlidir. Bu kapsamda küreselleşme politikalarının oluşturulması bakımından siyasilere ve politika yapıcılara katkı sağlamaktadır.

Keywords

• KOF ENdeksi
• Küreselleşme
• Finansal Gelişme
• Bankacılık
• Borsa
• BRICS-T

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