The impact of financial globalization on some macroeconomic variables –the experiences selected countries  

Thesis Submitted To The Council of The College of Administration and Economics – University of Karbala

As apartial Requirements For Obtining A Master’s Degree In Economic Sciences.

Submitted By

Aleia H. Alwan Al-khattabi

Supervised By

Ass.Prof.Dr. Khudhair A.Hussein AL-Waely

Abstract

      Financial globalization is the main product of financial liberalization and the transition to financial integration, which leads to the integration and linkage of local financial markets with foreign markets through several processes, including the abolition of restrictions on the movement and flow of capital to and from countries, which facilitates the process of its movement towards international financial markets.  This research presents annual data for three countries, namely, Malaysia, Singapore and Iraq, for the period from 2004-2021.  Various aspects of economic activity and financial institutions, as well as the effects of their variables on the sample countries (Malaysia, Singapore and Iraq). This helps decision makers to design correct liberalization programs adapted to the characteristics of the country in a way that ensures maximum benefit from them and reduces the risks related to them, given that taking incorrect decisions and procedures regarding this phenomenon has exorbitant costs that are difficult to correct or eliminate.

     The research is based on the hypothesis that financial globalization has positive effects on macroeconomic variables, especially economic growth, balance of payments, exports and imports if foreign investment work is organized and its benefits are taken advantage of. In order to verify this hypothesis, the structure of the research is divided into three chapters, the first chapter included  The theoretical framework of financial globalization and some macroeconomic variables and the relationship between them. The second chapter dealt with the analysis of financial globalization variables and some macro variables in selected countries, while the third chapter dealt with the impact of financial globalization on some macroeconomic variables in (Malaysia, Singapore, Iraq).  This research indicates that it is a global phenomenon that occurred and accelerated due to the regulatory procedures and facilities granted by developed and developing countries to the movement of capital across borders.  It achieved a continuous surplus and this had a clear impact on the economic growth of both Malaysia and Singapore.  Iraq has not benefited from the benefits of financial globalization due to the weakness of the Iraqi economic structure, except for foreign investment in the oil sector.  It was shown through the results of the standard tests that the study variables were stable at the level and the first difference, and this allowed us to use the ARDL model. Through the error correction model, it was found that the error correction parameter or the speed of adaptation in both Malaysia and Singapore is small, not exceeding 54% in Malaysia and 23% in Singapore, i.e.  That the lowest percentage of deviations is adjusted in the same period.

The impact of financial globalization on some macroeconomic variables –the experiences selected countries  

Thesis Submitted To The Council of The College of Administration and Economics – University of Karbala

As apartial Requirements For Obtining A Master’s Degree In Economic Sciences.

Submitted By

Aleia H. Alwan Al-khattabi

Supervised By

Ass.Prof.Dr. Khudhair A.Hussein AL-Waely

Abstract

      Financial globalization is the main product of financial liberalization and the transition to financial integration, which leads to the integration and linkage of local financial markets with foreign markets through several processes, including the abolition of restrictions on the movement and flow of capital to and from countries, which facilitates the process of its movement towards international financial markets.  This research presents annual data for three countries, namely, Malaysia, Singapore and Iraq, for the period from 2004-2021.  Various aspects of economic activity and financial institutions, as well as the effects of their variables on the sample countries (Malaysia, Singapore and Iraq). This helps decision makers to design correct liberalization programs adapted to the characteristics of the country in a way that ensures maximum benefit from them and reduces the risks related to them, given that taking incorrect decisions and procedures regarding this phenomenon has exorbitant costs that are difficult to correct or eliminate.

     The research is based on the hypothesis that financial globalization has positive effects on macroeconomic variables, especially economic growth, balance of payments, exports and imports if foreign investment work is organized and its benefits are taken advantage of. In order to verify this hypothesis, the structure of the research is divided into three chapters, the first chapter included  The theoretical framework of financial globalization and some macroeconomic variables and the relationship between them. The second chapter dealt with the analysis of financial globalization variables and some macro variables in selected countries, while the third chapter dealt with the impact of financial globalization on some macroeconomic variables in (Malaysia, Singapore, Iraq).  This research indicates that it is a global phenomenon that occurred and accelerated due to the regulatory procedures and facilities granted by developed and developing countries to the movement of capital across borders.  It achieved a continuous surplus and this had a clear impact on the economic growth of both Malaysia and Singapore.  Iraq has not benefited from the benefits of financial globalization due to the weakness of the Iraqi economic structure, except for foreign investment in the oil sector.  It was shown through the results of the standard tests that the study variables were stable at the level and the first difference, and this allowed us to use the ARDL model. Through the error correction model, it was found that the error correction parameter or the speed of adaptation in both Malaysia and Singapore is small, not exceeding 54% in Malaysia and 23% in Singapore, i.e.  That the lowest percentage of deviations is adjusted in the same period.