Financial Globalization: A Reappraisal

Ayhan Kose, Eswar Prasad, Kenneth Rogoff and Shang-Jin Wei

No 12484, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years, but along many disparate channels with a variety of apparently conflicting results. We attempt to provide a unified conceptual framework for organizing this vast and growing literature. This framework allows us to provide a fresh synthetic perspective on the macroeconomic effects of financial globalization, both in terms of growth and volatility. Overall, our critical reading of the recent empirical literature is that it lends some qualified support to the view that developing countries can benefit from financial globalization, but with many nuances. On the other hand, there is little systematic evidence to support widely-cited claims that financial globalization by itself leads to deeper and more costly developing country growth crises.

JEL-codes: F2 F3 F4 G1 (search for similar items in EconPapers)
Date: 2006-08
New Economics Papers: this item is included in nep-cba, nep-fdg and nep-fmk
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (499)

Published as M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan Journals, vol. 56(1), pages 8-62, April.
Published as M. Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(2), pages 143-197, June.

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Related works:
Journal Article: Financial Globalization: A Reappraisal (2009)
Journal Article: Financial Globalization: A Reappraisal (2009)
Working Paper: Financial Globalization: A Reappraisal (2006)
Working Paper: Financial Globalization: A Reappraisal (2006)
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