Abstract
The Relationship Between Financial Exposure and Economic Growth: A Panel Data Analysis for Developing Countries
In this study, the relationship between financial openness and macroeconomic indicators
is examined by panel data analysis method. In the study, Dumitrescu-Hurlin Test
and Panel ARDL Model were used, which show whether financial openness has an explanatory
power on economic growth. In the study, the existence of a causal relationship
between financial openness and economic growth in developing countries for the period
1995-2018 has been revealed. According to the panel ARDL results, increases in the degree
of financial openness in the long run show that financial openness has a positive effect
on economic growth for developing countries. While the level of financial openness has
a positive effect on trade openness and large money supply in developing countries, an
increase in the level of financial openness affects private sector loans negatively.
Keywords
Financial openness, Trade openness, Economic growth, Money supply, Panel ARDL.
