Paper Title
Finance-Growth Nexus and Globalization in Brazil, India, and Turkey: Evidence from VECM Cointegration Analysis

Abstract
This paper investigates the causal relationship between financial development and economic growth in Brazil, India, and Turkey by controlling for the “globalization” variables of trade openness, foreigndirect investment (FDI) and portfolio investment together with the structural break dummy. Our time series data cover the period 1974-2017. Two indicators of financial development―size and efficiency―are employed in the analysis. By implementing the cointegration and Granger causality tests in the framework of the vector error correction model (VECM), different results are obtained for the three countries. Considering that financial development and globalization exhibit either benefits or costs largely dependingon individual country’s institutional and structural characteristics, we stress the need for conducting a country specific in-depth studies on the finance-growth nexus. Keywords - Economic growth, Financial development, Globalization, VECM, Cointegration