earticle

영어

The goal of this study is to analyse the relationship between financial integration and economics growth with quarterly data from 1994/4 to 2017/1. The results from 2-stage estimates of Engle-Granger cointegration test show no common trend between the variables. However, the estimates from nonlinear cointegration tests those include changes in intercept and trend based on the characteristics of the estimated residuals, reveal that there is a long-run relationship between the index relating direct investment and economic growth. The results of this empirical analysis have two following implications. First, the relationship between financial integration relating direct investment and economic growth is statistically significant and the effect is positive. Second, it is necessary to consider the nonlinear frameworks for an analysis of the relationship between financial integration and economics growth.