Investigating the Impact of Financial Development Indicators and Economic and International Trade Performance on the Stock and Financial Markets

Subject Areas : Financial Accounting

Sara  Maleki ¹ (Department of industrial management, Central Branch, Islamic Azad University, Tehran, Iran)
Mehrzad   Minoie ² (Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran)
MirFeiz  Falah Shams ³ (Department of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran)

Received: 2022-01-16 Accepted : 2023-03-23 Published : 2024-04-27

Keywords: Economic performance, Financial development, International trade, Stock market,

Abstract :

One of the goals of researchers and policymakers is to find measures to achieve economic growth. Financial development is one of the policies that many economists recommend in order to achieve economic growth and development. From this perspective, financial development is an engine for economic growth, and policymakers should focus on creating and expanding financial institutions and markets. The present study examines the impact of financial development and economic performance indicators including economic growth and international trade in developing and developed countries in the long run from 2001 to 2018. Data collection has been done by two methods, library, and field, to complete the literature and research background, refer to libraries and researches, and for financial and economic data, including financial development indicators in two sections: Bank- Index and Capital Markets Stock-Index, as well as figures for Gross Domestic Product (GDP) and international trade from the World Development Index (WDI) databases, are used. Developed countries, due to their technology and power in production, can carry out their industrial production and export to developing countries. However, developing countries do not see long-term equilibrium relationships for economic growth and international trade.

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