Thesis Public Defense | VNP23 Dương Thị Ngọc Quỳnh

The impact of international financial intergation on economic growth

Student: Dương Thị Ngọc Quỳnh, VNP 23

Supervisor: Dr. Nguyễn Vũ Hồng Thái

Abstract:

In recent decades, international financial integration seems to have been more interested by policy makers as well as academic researchers because countries can reap its benefit when satisfying some definite conditions. However, the pioneering researchers have encountered many difficulties in quantifying the IFI variable. And there have been mixed opinions in empirical studies to assess the correlation between IFI and economic growth. This research paper contributes to the empirical literature that investigate the relationship between international financial integration and economic growth by using a cross-national and panel dataset of encompassing 178 countries over the period 1996-2015 relying on the estimation methods of OLS, 2SLS, OLS with Fixed Effects, and GMM. This research result reveals the beneficial impacts of international financial integration on economic growth are likely to be too small to be distinguished from zero, given existing data in spite of IFI is being in negative association with growth rate in statistically significance.

Keywords: International Financial Integration, Economic Growth, Cross-national Regression, Panel Regression.