Effects of Financial Globalization on Developing Countries: Some Empirical Evidence
( Occasional Papers )
Publication series ： Occasional Papers
Author： Mr. M. Ayhan Kose Mr. Kenneth Rogoff Mr. Eswar Prasad Shang-Jin Wei
Publisher： INTERNATIONAL MONETARY FUND
Publication year： 2003
E-ISBN: 9781452727820
P-ISBN(Paperback): 9781589062214
Subject： F112.1 The economies of the developing countries.
Keyword： Developing countries
Language： ENG
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Description
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.