Dynamics of Financial Integration and Development:An Application of Threshold Model

• Main Authors: Yu-Yen Lin, 林宥延
• Other Authors: Alex YiHou Huang
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/94176689932712797710

碩士 === 元智大學 === 財務金融學程 === 99 === This thesis examines the country-level financial integration and financial development in 78 countries from 1988 to 2009 by pooled OLS, first-differences, fixed effects, random effects and threshold models. When using sample in high-developing countries, the empirical results suggest financial development have significant positive impact to economic growth, but the effects seems different across countries, financial integration do not have direct impact to economic growth, but have positive effect to financial development, financial crisis have significant negative impact to financial development, but the effect seems also difference in different countries, also, increase the level of financial integration will not cause countries more easy suffer global economic shocks. When we extend sample to low-developing countries, the results indicate that the financial development do not have significant effects to economic growth, financial integration may have negative effects to economic growth. The threshold regressions results in countries suggest the negative insignificant coefficients of financial development are caused by low-developing countries, the financial integration have significant negative effects to economic growth. The results in threshold regression indicate that, financial development have negative impact to economic growth, the financial integration and financial development have significant threshold effect, countries will benefit from financial development when they have higher level of financial integration, stable exchange rate and higher foreign reserves.