The impact of international financial integration : FDI and remittances on economic growth in developing countries

Abstract EN

This paper examines the role of volatility of international capital inflows in analyzing the relationship between international financial integration and economic growth in developing countries by using 3SLS model between 1996 and 2016.

This study ascertains whether high-income developing countries have benefited more from financial integration than other countries to stimulate growth.

Empirical analysis shows that financial integration has a positive effect on economic growth in high and middle income developing countries through the examination of the joint international capital flows (foreign direct investment and remittances) and transmission channels (internal investment and household final consumption).