[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-648874-105":59,"doc-detail-648874-en":129},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":122,"head_meta":124,"extra_data":126,"updated_unix":128},105,"en","navigating-innovation-driven-economic-growth-in-emerging-markets-the-role-of-global-financial-flows","Navigating innovation-driven economic growth in emerging markets - the role of global financial flows","","Cross-border financial flows can catalyse growth in emerging economies, yet evidence is mixed because studies often pool heterogeneous inflows and rely on narrow proxies for financial innovation. Using annual data for Brazil, Russia, India, China, and South Africa (2005–2022), the analysis studies how the composition of external finance—FDI, portfolio flows, external debt, remittances, and ODA—interacts with domestic multidimensional financial innovation. Panel ARDL and nonlinear/instrumental-variable methods identify long- and short-run effects and asymmetries, showing distinct growth implications across flow types while innovation strengthens the returns from productive inflows.",{"@graph":69,"@context":121},[70,84,104],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/navigating-innovation-driven-economic-growth-in-emerging-markets-the-role-of-global-financial-flows/648874/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":98,"encodingFormat":97,"isAccessibleForFree":99,"interactionStatistic":100},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/navigating-innovation-driven-economic-growth-in-emerging-markets-the-role-of-global-financial-flows/648874.png","ImageObject",300,407,{"name":92,"@type":93},"Bulrr","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-23",true,{"@type":101,"interactionType":102,"userInteractionCount":4},"InteractionCounter",{"@type":103},"ViewAction",{"@type":105,"mainEntity":106},"FAQPage",[107,113,117],{"name":108,"@type":109,"acceptedAnswer":110},"How does the study link global financial flow composition to economic growth in emerging markets?","Question",{"text":111,"@type":112},"It examines how different external finance components—FDI, portfolio flows, external debt, remittances, and ODA—interact with growth rather than treating inflows as a single pooled category.","Answer",{"name":114,"@type":109,"acceptedAnswer":115},"What measures financial innovation in the analysis?",{"text":116,"@type":112},"Financial innovation is captured by a multidimensional index covering inclusion, depth, stability, literacy, and digital adoption.",{"name":118,"@type":109,"acceptedAnswer":119},"What do the results indicate about different types of external finance?",{"text":120,"@type":112},"FDI and remittances support long-run growth, while portfolio flows and external debt are associated with weaker outcomes.","https://schema.org",{"og:url":83,"og:type":123,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":125,"canonical":83},"index,follow",{"doc_id":127,"site_id":62},648874,1792795856,{"code":4,"msg":5,"data":130},{"doc_id":127,"user_id":131,"nickname":92,"user_avatar":132,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":133,"file_id":134,"file_url":135,"file_type":136,"file_size":137,"view_count":4,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":56,"language":138,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":139,"faqs":140,"seo_title":141,"seo_description":67,"update_tm":128,"read_time":142},5909892115043,"https://ap-avatar.wpscdn.com/davatar_6f874abed73319feea01a86fa6f0fab8","Applied Economics  \nISSN: 0003-6846 (Print) 1466-4283 (Online) Journal [homepage: ](homepage: www.tandfonline.com/journals/raec20)[www.tandfonline.com/journals/raec20](homepage: www.tandfonline.com/journals/raec20)  \nNavigating innovation-driven economic growth in emerging markets: the role of global financial flows  \nLi Hou & Siqi Wang  \nTo cite this article: Li Hou & Siqi Wang (21 Mar 2026): Navigating innovation-driven economic growth in emerging markets: the role of global financial flows, Applied Economics, DOI: 10. 1080/00036846 .2026.2645227  \nTo link to this article: [https://doi.org/10.1080/00036846.2026.2645227](https://doi.org/10.1080/00036846.2026.2645227)  \n Published online: 21 Mar 2026.  \n\n|  Submit your article to this journal  |  |\n| --- | --- |\n| | Article views: 147 |\n| | View related articles  |\n|  View Crossmark data |  |\n\nFull Terms & Conditions of access and use can be found at [https://www.tandfonline.com/action/journalInformation?journalCode=raec20](https://www.tandfonline.com/action/journalInformation?journalCode=raec20)  \nNavigating innovation-driven economic growth in emerging markets: the role of global financial flows  \nLi Houa and Siqi Wangb  \na Northeast Asian Research Center, Jilin University, Changchun, China; bNortheast Asian Studies College, Jilin University, Changchun, China  \nABSTRACT  \nCross-border financial flows can catalyse growth in emerging economies, yet evidence is mixed because many studies pool heterogeneous inflows and use narrow proxies for financial innovation. Using annual data for Brazil, Russia, India, China, and South Africa from 2005 to 2022, we examine how the composition of external finance, including foreign direct investment, portfolio flows, external debt, remittances, and official development assistance, interacts with domestic financial innovation measured by a multidimensional index of inclusion, depth, stability, literacy, and digital adoption. We estimate panel autoregressive distributed lag models with a pooled mean-group estimator to separate long-run effects from short-run dynamics, and we apply nonlinear specifications and instrumental-variable approaches to test asymmetries and address endogeneity. Results show that foreign direct investment and remittances support long-run growth, whereas portfolio flows and external debt coincide with weaker outcomes. Financial innovation directly raises growth, enhances the payoff from productive inflows, and attenuates the drag of debt-based financing. The study clarifies how flow composition and innovation capacity jointly shape growth and offers policy guidance on financial development and digital finance reforms that turn external resources into sustained growth.  \nKEYWORDS  \nGlobal financial flows; financial innovation; emerging markets; panel autoregressive distributed lag; economic growth  \nJEL CLASSIFICATION  \nF21; F24; F34; O16; O47  \nI. Introduction  \nOver the past few decades, private capital inflows to emerging markets and developing economies have expanded substantially and have exhibited pronounced boom – bust cyclicality around major global shocks. In the World Bank data architecture,‘private capital flows’ typically comprise net foreign direct investment and portfolio investment flows (World Bank DataBank metadata for private capital flows) . Financial globalization holds promise for enhancing growth in developing economies through mechanisms such as increased savings, lower capital costs, technological diffusion, and financial sector development (Nasreen et al. 2020) . Nonetheless, empirical findings reveal a complex, often ambiguous relationship between financial openness and economic performance. While some studies report positive effects of open capital accounts on financial development, others fail to establish a consistent causal link between integration and growth (Nguyen and Nguyen 2018).  \nTo harness financial globalization effectively, developing nations must understand how  \ninternational capital f","cbCaitwGfupqKkex","https://ap.wps.com/l/cbCaitwGfupqKkex","pdf",1627136,"English","# I. Introduction\n## Research motivation and gaps\n## Financial globalization and innovation mechanisms\n## Study objectives and approach","[{\"question\":\"How does the study link global financial flow composition to economic growth in emerging markets?\",\"answer\":\"It examines how different external finance components—FDI, portfolio flows, external debt, remittances, and ODA—interact with growth rather than treating inflows as a single pooled category.\"},{\"question\":\"What measures financial innovation in the analysis?\",\"answer\":\"Financial innovation is captured by a multidimensional index covering inclusion, depth, stability, literacy, and digital adoption.\"},{\"question\":\"What do the results indicate about different types of external finance?\",\"answer\":\"FDI and remittances support long-run growth, while portfolio flows and external debt are associated with weaker outcomes.\"}]","Navigating innovation-driven economic growth in emerging markets - the role of global financial flows | PDF",48]