Impact of Financial Integration on Economic Development: A Dynamic Panel Quantile Regression Analysis

Abdullahi, Abubakar; Ibrahim, Saifuzzaman; Hook, Law Siong; Ngah, Wan Azman Saini Wan

doi:2023.38.4.628

The Journal of Economic Integration 2023 December;38(4) :628-645.
DOI: https://doi.org/10.11130/jei.2023.38.4.628

Impact of Financial Integration on Economic Development: A Dynamic Panel Quantile Regression Analysis

Abubakar Abdullahi, ¹ Saifuzzaman Ibrahim, ² Law Siong Hook, ² Wan Azman Saini Wan Ngah, ²

¹Kaduna State University, Kaduna, Nigeria
²Universiti Putra Malaysia, Serdang, Selangor, Malaysia

Corresponding Author: Saifuzzaman Ibrahim ,Email: saifuzzaman@upm.edu.my; saifuzza74@yahoo.com

ABSTRACT

This paper investigated the impact of financial integration on economic development using the dynamic panel quantile estimator on a sample of 95 countries from 2004-2019. The results showed that the impact of financial integration on economic development varied across income levels. This study found that financial integration impacted economic development negatively in middle and high-income countries. However, financial integration did not significantly affect economic development in low-income countries.

JEL Classification

F36: Financial Aspects of Economic Integration
F63: Economic Development
O11: Macroeconomic Analyses of Economic Development
F62: Macroeconomic Impacts
C18: Methodological Issues: General

Keywords: Financial Integration | Economic Development | Dynamic Panel Quantile Regression | Income Quantiles