Sectoral analysis of the possibility of strengthening the position of developing countries in the global financial market

Mikhail G. Bich; Vladislav V. Antropov; Anton V. Navoy; Lyubov V. Krylova; Alexei V. Kuznetsov

doi:10.52957/27821927_2022_4_14

Authors

Mikhail G. Bich Financial University under the Government of the Russian Federation https://orcid.org/0000-0001-9380-8364
Vladislav V. Antropov Financial University under the Government of the Russian Federation https://orcid.org/0000-0002-2991-2877
Anton V. Navoy Financial University under the Government of the Russian Federation https://orcid.org/0000-0001-7058-4257
Lyubov V. Krylova Financial University under the Government of the Russian Federation https://orcid.org/0000-0002-5140-3008
Alexei V. Kuznetsov Financial University under the Government of the Russian Federation https://orcid.org/0000-0003-2365-0754

DOI:

https://doi.org/10.52957/27821927_2022_4_14

Keywords:

global financial market, sectoral development, developing countries, currency polycentrism

Abstract

The dollar-centric framework of the modern global monetary and financial system (GMFS) is the cause of increasing global imbalances. These imbalances formed both between individual actors of the world economy, and between groups of countries in the sphere of international monetary and financial relations and financial markets. The strengthening of the position of developing countries in the global economy raises the question of the need to strengthen the competitive position of their currencies. The aim of the research is to identify the key points, the impact on which can strengthen the position of developing countries in the global financial market. The authors’ hypothesis was to substantiate the possibilities of strengthening the positions of developing countries in the global financial market (GFM) within the trend of currency polycentricity through targeted influence of interested actors on certain parameters of GFM sectoral development. The study objectives are to analyze trends in these segments of the international financial market and build an econometric model of its sectoral development. We aimed the analysis of peculiarities and trends of development of the main segments of the GFM at identifying factors of sectoral development capable of ensuring the strengthening of the position of currencies of developing countries in the existing macroeconomic conditions. As a result of the study, we define the key factors, the impact on which is able to ensure the growth of the international financial market and the expansion of the use of currencies of developing countries. Testing of the model showed the expected growth of 8% GFM. We revealed that the global financial market is the most sensitive to changes in the share of non-dealer financial institutions in the foreign exchange market, foreign exchange market turnover, and the share of technological innovation. The results of the study became especially relevant in conditions of Russia’s isolation from the GMFS and may be in demand, given the need to develop the target sectors of regional and national financial markets.

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Sectoral analysis of the possibility of strengthening the position of developing countries in the global financial market

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