**6. Conclusions**

The international financial markets and financial capital flows illustrate the need for concerted efforts to enhance the mobilization of domestic financial resources and global financial crisis in emerging markets countries, and to reduce exposure to international portfolio capital and financial contagion. The volume of capital outflows also makes the case for reviving discussions on managing capital outflows and on developing a global financial safety net.

In the end, it can be summarized that the development of the financial market is one of the main keys to achieving long-term economic growth. The financial market can lead to economic growth if it can provide a suitable environment for the optimal allocation of resources and increase the efficiency of capital, as we mentioned earlier.

Therefore, the governments of all countries, including the governments of developing countries, must work to create the appropriate atmosphere to attract local and foreign investments and to enhance interaction the stock exchange.

In addition, the local community, and disseminate information through all available means. An informational and promotional effort must be made to promote the culture of investment in all stocks by the relevant authorities.

Monitoring stock market operations, given those Stocks is a new product separate from itself. The rest of the securities in the stock market, to attract money fleeing from Dealing in traditional tools, as an alternative to them, by providing market indicators Stocks is similar to stock market indices, which activates the trading market, and is reflected in the positively on the issue markets.

The government must be working to follow up efforts in the field of deepening the market, increasing its efficiency and liquidity, and spreading the culture of investment, especially the development of its website.

Paying more attention to the issue of corporate governance rules and standards in the financial markets, which is what keeps us away from falling into financial crises, and leads us to enjoy efficiency and work on diversifying the available tools.

The existence of a stock market with a strong infrastructure based on a set of rules and Clear and specific regulatory and supervisory procedures, and the Governments should make their stock market completely governed by principles and provisions and Legitimacy to avoid falling into crises, it helps it reach higher levels of efficiency.

Urging and working to continue developing the technology infrastructure of the stock exchange to serve all dealers in the stock exchange. The International stock exchanges must keep pace with technological developments to create an efficient stock exchange.

The necessity of establishing specialized educational institutes and training centers and holding conferences and scientific centers International, to qualify the human cadres necessary to work in the emerging financial markets.

#### **7. Policy recommendations**

This paper presents an empirical analysis of the impact of the international financial markets and financial capital flows through the period of the global financial crisis on global economic growth and development especially in developing countries such as Arab countries, and dynamics in emerging markets and the Middle East. We investigate the impact on sovereign and bond markets, as well as currency rates and capital flows, against the backdrop of globally interconnected financial markets.

Our research allows us to make a comparison between advanced and emerging economies. Our findings show that international financial markets and financial capital flows have had the greatest impact on global economic growth and development, as well as global financial markets in Europe and Asia, after controlling for a large number of domestic and global financial and macroeconomic factors.

Moreover, outflows of stocks and bonds from emerging markets appear to be directly linked to the international financial markets and financial capital flows given investors' risk aversion and flight to safety. Sovereign bond markets in emerging market and developing countries appear to be the hardest hit by

*Perspective Chapter: International Financial Markets and Financial Capital Flows... DOI: http://dx.doi.org/10.5772/intechopen.102572*

the coronavirus, compared to the magnitude of the effects on stock prices and exchange rates.

Additionally, while the international financial markets and financial capital flows will eventually recede, our findings show that global markets may face some Long-Term marginal effects.

Our findings show that government-sponsored fiscal stimulus packages, along with comprehensive central bank stabilization measures, have helped to reduce the negative effects of international financial markets and financial capital flows on financial market and capital flow dynamics. In particular, our findings highlight the key role of central banks in stabilizing financial markets globally during the international financial markets and financial capital flows crisis, through interest rate cuts, quantitative easing, and international swap lines.

More importantly, the impact of expansionary monetary policy in developed countries, which helped lower sovereign bond yields and bolster stock markets at home, also extended to emerging and small market countries, particularly about stable capital flow dynamics. This, combined with the influence of global factors such as (EPU) and (VIX), underscores the interdependence of the global financial system, and the impact of developments in the world's leading financial centers on financial conditions in emerging market countries.

The heightened uncertainty due to the international financial markets and financial capital flows pandemic has clearly affected the financial markets in emerging market and developing countries more harmful than in advanced economies.

However, emerging market economies appear to be strong performers in their policy responses to the pandemic. While fiscal stimulus packages have restored confidence in domestic markets, many central banks in Europe and the Middle East have embarked on quantitative easing for the first time.

Our results indicate that these monetary policy measures were effective in the case of Asian emerging markets, as they supported stock prices. More importantly, these measures also helped stabilize capital inflows.

Furthermore, given the size of bond and equities capital outflows from emerging, small and medium markets, our findings highlight the importance of strengthening the local investor base to be less dependent on international portfolio investments, supporting the findings of [12].

#### **Acknowledgements**

The author extends their appreciation for their support for scientific research at the Palestine Economic Policy Research Institute (MAS) in Palestine to support this research and encourage the author in particular, in addition to that the authors send a special thanks and a great appreciation to the jury staff Reviewers, and to the Editorial Board at IntechOpen.

#### **Author's contribution**

The Sole Author Designed, Analyzed, Interpreted and Prepared the Chapter.

#### **Conflict of interest**

The author has declared that no competing interests exist.
