Nonlinear relationship between economic growth and nuances of globalisation with income stratification: Roles of financial development and governance

摘要: Abstract We study the effect of overall globalisation on economic growth in a neoclassical macroeconomic model. further assess our model by considering decomposed measures including economic, political, and social components. To this end, we estimate panel data models applying cross-sectional dependency-autoregressive distributed lags (CS-ARDL) approach to sample 116 countries during available period, 1980–2015. classified into upper middle-, lower high-income groups minimise country-specific heterogeneity. Our results affirm presence quadratic (nonlinear) U-shaped relationship between (including components) for middle- middle-income group. However, they provide evidence positive linear countries. Given arguments that impact is conditional local financial development (FD) quality governance (QoG), incorporate their role. fresh impacts are more profound with higher QoG deepening FD. check robustness analysis U test dynamic generalised methods moment approach. also policy implications.