The nonlinear relationship between economic growth and the nuances of globalization with income classification: the roles of financial development and governance

One of the challenges facing the world's economic leaders and policymakers today is to achieve optimal economic conditions through global economic integration. The fact is that the many benefits of global economic integration far outweigh the disadvantages, and this is not hidden from those involved. For this reason, this paper examines the nonlinear relationship between economic growth and the subtle differences between globalization and income classification: the roles of financial development and governance. The research is dedicated to model estimation by SVAR, RBF and Interacted-VAR methods, which leads to estimating statistical models and examining the results and assumptions in the target population. The results of the analysis of variance show that the share of economic growth variables in explaining the fluctuations of economic growth gradually decreases and from the fifth period onwards, the share of the variable government expenditures in explaining the fluctuations of economic growth increases. It is noteworthy for oil-rich countries that the share of government spending is lower than the market interest rate as a monetary variable in explaining economic growth fluctuations as a macroeconomic supply side variable. Therefore, it can be argued that in oil-rich countries with interest rate targeting monetary system, government spending as a monetary variable has a decisive role in explaining fluctuations in economic growth and monetary policymakers in euro countries can implement expansionary monetary policy to the extent of economic growth. Acceptable reduce.