The Impact Of Economic Growth Through The Process Of The Financial Liberalisation Of Developing Countries

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M21 EFA YANG LIU 5289976 20/4/2015 The Impact on Economic Growth through the Process of the Financial Liberalization of Developing Countries Abstract: The purpose of this study was to show that the decisive factor in financial liberalization that financial development can stimulate economic growth. Three different components were analyzed. The first is that the by using the endogenous growth model to find the relationship between internal financial liberalization and Gross Domestic Product (GDP) which is the theoretical components. The second portion includes an empirical study by using panel data to verify the theoretical relationship between the Gross Domestic Product (GDP) and financial liberalization and. It covers a sample of 15 developing countries, enabling us to achieve three basic results. First, when the financial system is not liberalized, we noted that it has a negative effect on the growth of foreign direct investment per capita GDP. Second, when foreign direct investment is characterized implement them have a positive effect on economic growth of its financial industry in developed countries. This means that the key variable, which determines the degree of efficiency of FDI liberalization of the financial system. Therefore, foreign direct investment affect economic growth no liberalized financial system to challenge. Third, we found that the level of financial development is strategy variables and it has positive impact on growth. Key words:
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