Effects on 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: eBook
Language:Chinese
Published: Washington, D.C. International Monetary Fund 2004
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Capital flows 
653 |a Long-term Capital Movements 
653 |a Exports and Imports 
653 |a Foreign direct investment 
653 |a Financial integration 
653 |a Capital movements 
653 |a Macroeconomics: Consumption 
653 |a Investments, Foreign 
653 |a Wealth 
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653 |a International Investment 
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653 |a Economic & financial crises & disasters 
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653 |a Financial Crises 
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520 |a 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