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Nexus between global financial integration and economic growth: An ARDL approach

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  • Mohammad Omar FARUK

    (University of Liège, Belgium)

Abstract

Scholars propose that global financial integration can boost foreign investment, technology transfer, and economic development, yet it presents challenges like inflation & financial risks. This study explores factors such as FDI, ODA, foreign assets, and external debt, shaping a country's economic growth. Focused on Bangladesh, it employs the ARDL approach for connecting financial integration and economic growth. Findings show significant impacts, with ODA & foreign assets benefiting while external debt & FDI have negative effects. These insights aid policy formulation to optimize foreign capital inflows and mitigate adverse consequences, fostering economic growth, unveiling the relationship between financial openness and development.

Suggested Citation

  • Mohammad Omar FARUK, 2024. "Nexus between global financial integration and economic growth: An ARDL approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 161-182, Summer.
    • Handle: RePEc:agr:journl:v:xxxi:y:2024:i:2(639):p:161-182
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