Financial globalisation and human development

Ajit Singh

MPRA Paper from University Library of Munich, Germany

Abstract: ABSTRACT This paper is concerned essentially with the question, how does financial globalisation affect economic welfare? Orthodox theory suggests that because of greater risk-sharing between countries that financial liberalisation entails, there should be no welfare losses. Greater risk sharing should lead to greater smoothing of consumption and/or growth trajectories for developing countries. Yet there is widespread evidence of crises following liberalisation. Apart from these international macro-economic issues, it is argued here that financial globalization changes the very nature of capitalism from managerial to finance capitalism. This profoundly affects at the micro-economic level corporate governance, corporate finance and income distribution. Both macro- and micro-economic factors outlined here influence human development.

Keywords: Financial globalisation; capital account liberalisation; finance capitalism and human development (search for similar items in EconPapers)
JEL-codes: H3 I0 (search for similar items in EconPapers)
Date: 2011-08-13
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Citations: View citations in EconPapers (3)

Published in Journal of Human Development 1.13(2012): pp. 135-151

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Related works:
Journal Article: Financial Globalization and Human Development (2012)
Working Paper: Financial Globalisation and Human Development (2011)
Working Paper: Financial globalisation and human development (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:53043

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