Financial integration, globalization, and real activity

Arbeitspapier

Using data for a large number of advanced and emerging market economies during 1982-2009, this paper examines the distinct impact of financial integration and globalization on several dimensions of real activity. We find that: (a) financial integration has progressed significantly worldwide, particularly in emerging markets, as well as within regions; (b) advances in financial integration predict better growth prospects; (c) both advances in financial integration and globalization are associated with higher growth, lower growth volatility, and lower probabilities of severe declines in real activity. Advances in financial integration and globalization indeed foster countries' growth, and there appears to be no trade-off between these advances and macroeconomic stability.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 3737

Classification and Topics

• Classification: Wirtschaft ; Financial Aspects of Economic Integration ; International Financial Markets
• Subject: financial integration ; globalization ; real activity ; Internationaler Finanzmarkt ; Marktintegration ; Globalisierung ; Wirtschaftswachstum ; Konjunktur ; Schätzung ; Industriestaaten ; Schwellenländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): De Nicolò, Gianni ; Juvenal, Luciana
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/55543
• Last update: 10.03.2025, 11:43 AM CET