FINANCIAL INTEGRATION DETERMINANTS IN EMERGING ECONOMIES
Abstract
Financial integration is about creating a global financial market and financial institutions. In respect of this, this study seeks to identify economic, financial and institutional factors that significantly influence the level of financial integration in emerging economies using a time series data of twenty nine years from 1996 to2024 and employing the autoregressive distributive lag technique (ARDL). The model specified financial integration (dependent variable) as a function of trade balance, FDI, institutional quality and exchange rate (independent variables) The general findings from the study show that the independent variables specified have an effect (varying dimensions) on the dependent variable both in the long run and short run. One of the recommendations made was strengthened regulatory quality/framework that would ensure stability and transparency in financial markets and institutions.
Keywords:
financial integration, trade balance, FDI, institutional quality, exchange rateDownloads
Published
DOI:
https://doi.org/10.5281/zenodo.16927672Issue
Section
How to Cite
License
Copyright (c) 2025 Dr Dickson Oyovwi , Dr Bomi Osho-Itsueli
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Abbasor, A. (2019) Pooled mean group approach to test the determinants of financial integration: Evidence from OECD and G20 countries. World Economy 10(3) Doi:https://doiorg/10.5430/rwe.v/on3p 366.
Abdul, H (2021). Effect of financial integration on human capital development in Nigeria: American Journal of Social Issues & Humanities 2(4), 3-23
Adebowale, E. A & Akindele, I. A. (2018). Interest rate, foreign exchange rate, and stock market development in Nigeria: Business review, 9(3), 247-253
Adekunle. C.F., Abayomi, M. & Odusanya, J. (2021). Financial integration and growth outcomes in Africa: experience of the trade blocs: International Journal of Economics, Commerce and Management 3(1)2-24
Aman Z. Mallick, S. and Nemliogu, I. (2024) Financial Integration, Institutional quality and Real exchange rates: Evidence from emerging markets Handbook of Financial Integration 255 – 291.
Ayadi, (2021). Financial development, savings and economic growth in Nigeria International Journal of Development and Sustainability, 3(30), 466-480.
Boamah, N.A. (2020). Investment, financial sector development and the degree of emerging markets integration. Journal of financial economic policy 12(1) 45-64
Egbetunde, T & Anthony, E. A. (2020). Financial integration and economic growth in Sub-Saharan Africa: Journal of Sustainable Development in Africa 16, (6) 3-37
Ifumeze P.C. (2023) Financial Integration and Economic Development in Nigeria Journal of Arts, Management by Social Sciences. TUJAMSS 8(1) 288 – 302.
Mail R.R.N, Handoyo, R.D, Ridzuan A.R. & Razak E (2020). Determinants of international financial integration in ASEAN – 5 countries: recent findings based on parel GMM Approach: International Journal of Academic Research on Accounting Finance and Management Sciences 10(1) 316-323.
Mehmen, G. (2020). Are determinants of international financial integration in the European institution countries different from post transition countries? Studies in Business and Economics 15(1) 40-54.
Selvarajan, S.K. & Ab-Rahuam, R. (2020) Financial Integration and Economic Growth Journal of Economic Integration 35(1) 191-213.
Vo D. H, Vo A. T & Ho C. H. (2020). Does financial integration enhance economic growth in china?: Journal of International Financial Markets, Institutions and Money 14: 281–94
