The Impact of Trade and Financial Globalization on Cross- Border Investments: Perspective of Newly Industrialized Countries

Atıcı Ustalar S.

Macroeconomic Challenges to Structural Reform and Industrial Development, Prof. Dr. Oytun Meçik, Editör, IGI Global yayınevi, California, ss.331-359, 2025

  • Yayın Türü: Kitapta Bölüm / Araştırma Kitabı
  • Basım Tarihi: 2025
  • Yayınevi: IGI Global yayınevi
  • Basıldığı Şehir: California
  • Sayfa Sayıları: ss.331-359
  • Editörler: Prof. Dr. Oytun Meçik, Editör
  • Atatürk Üniversitesi Adresli: Evet

Özet

This study analyzes the impact of Newly Industrialized Countries (NICs) trade and f inancial globalization on bilateral financial asset trade. The analysis is carried out using the financial gravity model. The model is estimated with the PPML estimator using bilateral portfolios, debt securities, and equity investments of 120 countries between 2001- 2022. De facto and de jure trade and financial openness variables are used to control globalization in model estimation. Estimation results show that the impact of trade and financial openness on financial asset trade in NICs is higher than the world average. When compared with G7 countries, show that the openness of NICs' goods and capital markets is not yet at the level of industrialized countries.