Does Financial Integration Matter During Financial Crises? A Comparative Analysis of Economies of Developing Countries
Does Financial Integration Matter During Financial Crises? A Comparative Analysis of Economies of Developing Countries
Author(s): Besnik FetaiSubject(s): Economy, National Economy, Economic policy, International relations/trade, Developing nations, Methodology and research technology, Financial Markets
Published by: Vysoká škola ekonomická v Praze
Keywords: Economic growth; financial crisis; financial integration; financial development
Summary/Abstract: Using developing countries in Europe for context, this study examines the complex relationship between financial crises and financial integration. We use panel data comprising 37 countriesin Europe, including Iceland, Belarus, Ukraine, Turkey, and Russia from 2000–2019 andthe general method of moments. Our findings show that there is a positive relationship betweenfinancial integration and development and economic growth. In addition, the results suggest thata higher degree of financial integration is not necessarily increasing financial fragility duringa financial crisis. Therefore, the results show that it is a self-defeating policy for developing countries to apply a strategy of financial protectionism over a financial crisis.
Journal: Prague Economic Papers
- Issue Year: 33/2024
- Issue No: 1
- Page Range: 60-78
- Page Count: 19
- Language: English
