Does Global Development, Trade, and Finance Impact Economic Growth? Evidence from Developed Nations

Ömer Yilmaz

Fiscaoeconomia, 2025, issue 4

Abstract: This study aims to investigate the effects of commercial, global, and financial developments, which stand out as the main components of economic growth, on economic growth dynamics in developed countries. In this context, the annual data of France, Germany, Japan, the United States, and the United Kingdom, which represent the top five countries of the world economy between 1980 and 2024, are used. In the study, the effects of financial, commercial, and global developments on economic growth are analyzed with the Augmented Mean Group (AMG) method. According to the findings, global, commercial, and financial developments have a positive and statistically significant effect on economic growth. This result indicates that the independent variables considered in this study play a critical role in economic growth and macroeconomic stability. Finally, it is concluded that developed countries need to focus more on global, commercial, and financial developments in order to achieve sustainable economic growth in the long run. These findings have important implications for policymakers.

Keywords: Trade Openness; Financial Development; Economic Growth (search for similar items in EconPapers)
JEL-codes: G20 O11 O16 O40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:250414

DOI: 10.25295/fsecon.1719526

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