Effects of Financial Globalization on Developing Countries : Some Empirical Evidence /

This study provides a candid, systematic, and critical review of recent evidence on this complex subject. Based on a review of the literature and some new empirical evidence, it finds that (1) in spite of an apparently strong theoretical presumption, it is difficult to detect a strong and robust cau...

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Bibliographic Details
Main Author: Kose, Ayhan
Other Authors: Prasad, Eswar, Rogoff, Kenneth, Wei, Shang-Jin
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2003.
Series:Occasional Papers; Occasional Paper ; No. 2003/007
Online Access:Full text available on IMF
Description
Summary:This study provides a candid, systematic, and critical review of recent evidence on this complex subject. Based on a review of the literature and some new empirical evidence, it finds that (1) in spite of an apparently strong theoretical presumption, it is difficult to detect a strong and robust causal relationship between financial integration and economic growth; (2) contrary to theoretical predictions, financial integration appears to be associated with increases in consumption volatility (both in absolute terms and relative to income volatility) in many developing countries; and (3) there appear to be threshold effects in both of these relationships, which may be related to absorptive capacity. Some recent evidence suggests that sound macroeconomic frameworks and, in particular, good governance are both quantitatively and qualitatively important in affecting developing countries' experiences with financial globalization.
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<strong>On-Campus Access:</strong> No User ID or Password Required
Physical Description:1 online resource (64 pages)
Format:Mode of access: Internet
ISSN:0251-6365
Access:Electronic access restricted to authorized BRAC University faculty, staff and students