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Nonlinear Impacts of Globalization on Financial Development in Iran: A Markov Switching Technique
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Morteza Soleimani1   , Seyyed Ali Paytakhti Oskooe 2, Monireh Dizji3 , Sima Eskandari Sabzi4 |
1- Ph.D. Student, Department of Economics, Miyaneh Branch, Islamic Azad University, Miyaneh, Iran
2- Associate Prof., Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran (Author) , Oskooe@iaut.ac.ir
3- Assistant Prof., Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran
4- Assistant Prof., Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran. |
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Abstract: (1489 Views) |
| The relationship between globalization indicators and financial development is controversial. International institutions such as the World Bank, the International Monetary Fund, and the Organization for Economic Co-operation and Development (OECD) advise member states that globalization indicators have a positive impact on financial development. This paper also examines the nonlinear effects of globalization (Combined Globalization Index) on financial development (banking,s credit) in Iran during the period 1988 to 2019 using the Markov Switching econometric technique. The results indicate that globalization in the first regime (boom) has a positive effect on the financial development index, while in the second regime (recession) we see a negative relationship. Therefore, given the importance of globalization, economic planners and policy makers should provide a good platform for the further development of financial services. |
Article number: 13 |
| Keywords: financial development, globalization, Markov Switching. |
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Full-Text [PDF 674 kb]
(417 Downloads)
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Article type: Research |
Subject:
Special
Received: 2022/02/1 | Accepted: 2022/03/14 | Published: 2022/06/19
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