Abstract:

With the influence of rapidly evolving technology in recent years, international markets have been activated and capital flows have been accelerated. Financial institutions and organizations in the triggering position of these developments have become today’s leagues of the globalization process. This process, addressed in the top title of financial globalization, can instantly impact the economies that are interacting in a multi-dimensional way, and offer threats and opportunities. Therefore, the changes in the financial globalization index, including foreign direct investments, portfolio investments, international income payments, debt and reserve relationships and capital and investment limits, and their macroeconomic effects are carefully examined. In the context of the study, the impact of financial globalization on economic growth was studied in the Eight Developing Countries (D-8) countries. An asymmetrical causality test developed by Hatemi-J and E. Roca (2014) was implemented through data covering the years 1980-2016. When the causal relations are studied, it is seen that the countries discussed are moving symmetrically and asymmetrically on different dynamics. This situation shows that the financial globalization and economic growth relationships are multi-dimensional for the D-8 countries that deal with a wide geography from Nigeria to Malaysia. Therefore, it is believed that economic and financial infrastructure and coordination should be established and strengthened in order to activate D-8.

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