Investigating the Impact of Financial Development Indicators and Economic and International Trade Performance on the Stock and Financial Markets
الموضوعات :
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
)
الکلمات المفتاحية: Economic performance, Financial development, International trade, Stock market,
ملخص المقالة :
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.
[1] Assari, A., Financial Development and Economic Growth: A Comparison of OPEC and Non-Oil Developing Oil Countries Using the Generalized Torque (GMM) Method, Journal of Economic Research, 2015; 82: 141-146
[2] Agah, M., Malekpoor, H., Bagheri, A., Investigating the Effect of Financial Constraints and Different Levels of Agency Cost on Investment Efficiency, Advances in Mathematical Finance and Applications, 2017; 2(4): 31-47. doi: 10.22034/amfa.2017.536264
[3] Azadi, M., Izadikhah, M., Ramezani, F., Hussain, F.K., A mixed ideal and anti-ideal DEA model: an application to evaluate cloud service providers, IMA, Journal of Management Mathematics, 2020; 31(2): 233-256. doi: 10.1093/imaman/dpz012
[4] Bencivenga, V.R., Smith, B.D., Financial Intermediation and Endogenous Growth, The Review of Economic Studies, 1991; 58(2): 195-209. doi: 10.2307/2297964
[5] Dumitrescu, E. I., Hurlin, C., Testing for Granger noncausality in heterogeneous panels, Economic Modelling, 2012; 29(4): 1450–1460.
[6] Friedman, M., and Schwartz, A.J., A Monetary History of the United States, 1867–1960, Princeton: Princeton University Press for NBER, 1963.
[7] Greenwood, J., and Smith, B., Financial markets in development, and the development of financial markets, Journal of Economic Dynamics and Control, 1997; 21(1): 145-181. doi: 10.1016/0165-1889(95)00928-0
[8] Im, K.S., Pesaran, M., Shin, Y., Testing for unit roots in heterogeneous panels, Journal of Econometrics, 2003; 115(1): 53-74. doi: 10.1016/S0304-4076(03)00092-7
[9] Izadikhah, M., Financial Assessment of Banks and Financial Institutes in Stock Exchange by Means of an Enhanced Two stage DEA Model, Advances in Mathematical Finance and Applications, 2021; 6(2): 207-232. doi: 10.22034/amfa.2020.1910507.1491
[10] Jokar, H., Shamsaddini, K., Daneshi, V., Investigating the Effect of Investors' Behavior and Management on the Stock Returns: Evidence from Iran, Advances in Mathematical Finance and Applications, 2018; 3(3): 41-52. doi: 10.22034/amfa.2018.544948
[11] King, R.G., Levine, R., Finance and Growth: Schumpeter Might Be Right, The Quarterly Journal of Economics, 1993;108(3): 717-737. doi: 10.2307/2118406
[12] Lucas, R.E., On the mechanics of economic development, Journal of Monetary Economics, 1988; 23: 3-42.
[13] McKinnon, R.I., Money and Capital in Economic Development, Brookings Institution, Washington, 1973.
[14] Khatai, M., The effect of rate fluctuations on economic growth according to the level of development of financial markets, Iranian Economic Research, 2008; 37: 1-20.
[15] Poordavoodi, A., Moazami Goudarzi, M.R., Haj Seyyed Javadi, H., Rahmani, A.M., Izadikhah, M., Toward a More Accurate Web Service Selection Using Modified Interval DEA Models with Undesirable Outputs, Computer Modeling in Engineering & Sciences, 2020; 123(2): 525-570. doi: 10.32604/cmes.2020.08854
[16] Parsa, B., Sarraf, F., Financial Statement Comparability and the Expected Crash Risk of Stock Prices, Advances in Mathematical Finance and Applications, 2018; 3(3):77-93. doi: 10.22034/amfa.2018.544951
[17] Roubini, N., and Sala-y-Martin, X., A growth model of inflation, tax evasion. and financial repression, Working paper no. 4062 (NBER, Cambridge. MA) May, 1992.
[18] Rousseau., and Wachtel, P., Equity markets and growth: Cross-country evidence on timing and outcomes, 1980-1995, Journal of Banking & Finance, 2000; 24(12): 1933-1957
[19] Robinson, J., The Generalisation of the General Theory, in the Rate of Interest, and Other Essays, 2nd Edition, Macmillan, London, 1952.
[20] Rezaei, N., Elmi, Z., Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting, Advances in Mathematical Finance and Applications, 2018; 3(4): 67-82. doi: 10.22034/amfa.2019.576127.1118
[21] Roostaee, R., Izadikhah, M., Hosseinzadeh Lotfi, F., An interactive procedure to solve multi-objective decision-making problem: an improvment to STEM method, Journal of Applied Mathematics, 2012; 324712:1-18. doi: 10.1155/2012/324712
[22] Saint-Paul, G., Fiscal Policy in an Endogenous Growth Model, The Quarterly Journal of Economics, 1992; 107(4):1243-1259.
[23] Schumpeter, J.A., The Theory of Economic Development; an Inquiry into Profit, Capital, Credit, Interest, and the Business Cycle, Harvard University Press, Cambridge, 1911.
[24] Salehi, A., Mohammadi, S., Afshari, M., Impact of Institutional Ownership and Board Independence on the Relationship Between Excess Free Cash Flow and Earnings Management, Advances in Mathematical Finance and Applications, 2017; 2(3): 91-105. doi: 10.22034/amfa.2017.533104
[25] Tavana, M., Izadikhah, M., Farzipoor Saen, R., Zare, R., An integrated data envelopment analysis and life cycle assessment method for performance measurement in green construction management, Environ Sci Pollut Res, 2021; 28: 664–682. doi: 10.1007/s11356-020-10353-7
[26] Tsai, C., Feature selection in bankruptcy prediction, Knowledge-Based Systems, 2009; 2(22): 120-127. doi: 10.1016/j.knosys.2008.08.002.
[27] Teruel, P., Solano, J., Accruals quality and corporate cash holdings, Accounting and Finance, 2009; 49: 95–115. doi:10.1111/j.1467-629X.2008. 00276.x
[28] Zare, R., Izadikhah, M., Multi-criteria decision making methods for comparing three models of aluminum ingot production through life cycle assessment, Applied Ecology and Environmental Research, 2017; 15(3): 1697-1715. doi: 10.15666/aeer/1503_16971715
[29] Zheng, J., Wang, Y., Li, S., and Chen, H., The Stock Index Prediction Based on SVR Model with Bat Optimization Algorithm, Algorithms, 2021;14(10). doi: 10.3390/a14100299
[30] Zhang, D., Xiang, W., Cao, Q., Chen, S., Application of incremental support vector regression based on optimal training subset and improved particle swarm optimization algorithm in real-time sensor fault diagnosis, Applied Intelligence, 2021; 51(6): 3323-3338. doi: 10.1007/s10489-020-01916-9
