| Summary |
| |
|
I.
|
Overview
|
| A. |
Definitions and Basic Stylized Facts |
| B. |
Does Financial Globalization Promote Growth in Developing
Countries? |
| C. |
What Is the Impact of Financial Globalization on Macroeconomic
Volatility? |
| D. |
The Role of Institutions and Governance on the Effects
of Globalization |
| E. |
Summary |
| |
|
II.
|
Basic Stylized Facts
|
| A. |
Measuring Financial Integration |
| B. |
North-South Capital Flows |
| C. |
Factors Underlying the Rise in North-South Capital
Flows |
| |
|
III.
|
Financial Integration and Economic Growth
|
|
A.
|
Potential Benefits of Financial Globalization
in Theory |
|
B.
|
Empirical Evidence |
|
C.
|
Synthesis |
| |
|
IV.
|
Financial Globalization and Macroeconomic Volatility
|
|
A.
|
Macroeconomic Volatility |
| B. |
Crises as Special Cases of Volatility |
| C. |
Has Financial Globalization Intensified
the Transmission of Volatility? |
| D. |
Some Factors That Increase Vulnerability
to the Risks of Globalization |
| |
|
V.
|
Absorptive Capacity and Governance in the Benefits/Risks of
Globalization
|
| A. |
Threshold Effects and Absorptive Capacity |
| B. |
Governance As an Important Element of Absorptive Capacity |
| C. |
Domestic Governance and the Volatility of International
Capital Flows |
| D. |
Summary |
| |
| Text Tables |
| 1. |
Volatility of Different types of Capital Inflows |
| 2. |
Fastest and Slowest Growing Economies During 1980-2000
and Their Status of Financial Openness |
| 3. |
Summary of Recent Research on Financial Integration
and Economic Growth |
| 4. |
Volatility of Annual Growth Rates of Selected Variables |
| 5. |
Summary of Studies on Welfare Gains from International
Risk Sharing |
| 6. |
Are Small States Different? Some Summary Statistics |
| |
| Figures |
| 1. |
Measures of Financial Integration |
| 2. |
Gross Capital Flows |
| 3. |
Net Capital Flows |
| 4. |
Foreign Ownership Restrictions |
| 5. |
Channels Through Which Financial Integration Can Raise
Economic Growth |
| 6. |
Increase in Financial Openness and Growth of Real Per
Capital GDP |
| 7. |
Increase in Financial Openness and Growth of Real Per
Capita GDP: Conditional Relationship, 1982-97 |
| 8. |
Differential Effects of Financial and Trade Integration
on Improvements in Health |
| 9. |
Volatility of Income and Consumption Growth |
| 10. |
Corruption and Foreign Direct Investment |
| 11. |
Difference Between Actual Internationa Mutual Fund
Investment and the MSCI Benchmark: Transparent versus Opaque Countries |
| 12. |
Herding and Opacity |
| 13. |
Corruption Tilts the Compoition of Capital Flows Towards
Borrowing |
| 14. |
Welfare Gains from International Risk Sharing |
| |
| Boxes |
| 1. |
The Effects of Different Types of Capital Flows on
Growth |
| 2. |
Do Financial and Trade Integration Have Different Effects
on Economic Development? Evidence from Life Expectancy and Infant
Mortality |
| 3. |
The Effects of Globalization on Volatility: A Review
of the Empirical Evidence |
| 4. |
Herding and Momentum Trading by International Investors |
| 5. |
Transparency and International Mutual Funds |
| |
|
Appendices
|
| I. |
The First Era of International Financial Integration,
1870–1913 |
| II. |
Calculating the Potential Welfare Gains from International
Risk Sharing |
| III. |
Contingent Securities for International Risk Sharing |
| IV. |
Small States and Financial Globalization |
|
V.
|
Data Appendix
|
| |
| References |
