Financial integration, globalization, and real activity

Gianni De Nicolò and Luciana Juvenal

Journal of Financial Stability, 2014, vol. 10, issue C, 65-75

Abstract: Using data for 48 advanced and emerging market economies during 1985–2008, this paper examines the impact of measures of financial integration and globalization on several dimensions of real activity. We find that both advances in financial integration and globalization are associated with higher growth, lower growth volatility, and lower probabilities of severe declines in real activity, with the positive impact of financial integration on macroeconomic stability enhanced by improvements in corporate governance. Thus, we find no evidence of a trade-off between advances in financial integration, globalization, and growth and macroeconomic stability.

Keywords: Financial integration; Globalization; Real activity (search for similar items in EconPapers)
JEL-codes: F36 G15 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (23)

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Working Paper: Financial Integration, Globalization, and Real Activity (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:10:y:2014:i:c:p:65-75

DOI: 10.1016/j.jfs.2013.04.004

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