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Author: Xuan Vinh Vo Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper employs a new panel dataset and a wide assorted number of indicators both de jure and de facto measures to proxy for international financial integration to investigate the relationship between international financial integration and economic growth. Using 79 countries with the data covering the period from 1980 to 2003, our analysis indicates a weak relationship between international financial integration and economic growth. Our data also show that this relationship is not different even though we control for different economic conditions. With the development of financial market and increased degree of international financial integration around the world, many countries especially developing countries are now trying to remove cross-border barrier and capital control, relaxing the policy on capital restrictions and deregulating domestic financial system. This paper will empirically examine the growth impacts of international financial integration. This paper is going to contribute to the existing literature on the impacts of international financial integration on economic performance in a number of ways. Firstly, we examine an extensive array of international financial integration indicators, both de jure and de facto of international financial integration. We examine the IMF's official restriction dummy variable (1) as well as the newly developed capital restriction measures by Miniane (2004). Furthermore, we explore various measures of capital flows and in disaggregation including total assets and liabilities, total liabilities, FDI, portfolio, and total capital flows as share of GDP (a total of 18 de facto indicators). Moreover, we consider measures of just capital inflows as well as measures of gross capital flows (inflows plus outflows) to proxy for international financial integration because capital account openness is defined both in terms of receiving foreign capital and in terms of domestic residents having the ability to diversify their investments abroad. In addition, we examine a wide array of international financial integration proxies because each indicator has advantages and disadvantages (2).
Author: Xuan Vinh Vo Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper employs a new panel dataset and a wide assorted number of indicators both de jure and de facto measures to proxy for international financial integration to investigate the relationship between international financial integration and economic growth. Using 79 countries with the data covering the period from 1980 to 2003, our analysis indicates a weak relationship between international financial integration and economic growth. Our data also show that this relationship is not different even though we control for different economic conditions. With the development of financial market and increased degree of international financial integration around the world, many countries especially developing countries are now trying to remove cross-border barrier and capital control, relaxing the policy on capital restrictions and deregulating domestic financial system. This paper will empirically examine the growth impacts of international financial integration. This paper is going to contribute to the existing literature on the impacts of international financial integration on economic performance in a number of ways. Firstly, we examine an extensive array of international financial integration indicators, both de jure and de facto of international financial integration. We examine the IMF's official restriction dummy variable (1) as well as the newly developed capital restriction measures by Miniane (2004). Furthermore, we explore various measures of capital flows and in disaggregation including total assets and liabilities, total liabilities, FDI, portfolio, and total capital flows as share of GDP (a total of 18 de facto indicators). Moreover, we consider measures of just capital inflows as well as measures of gross capital flows (inflows plus outflows) to proxy for international financial integration because capital account openness is defined both in terms of receiving foreign capital and in terms of domestic residents having the ability to diversify their investments abroad. In addition, we examine a wide array of international financial integration proxies because each indicator has advantages and disadvantages (2).
Author: Hali J. Edison Publisher: ISBN: Category : Developing countries Languages : en Pages : 36
Book Description
This paper uses new data and new econometric techniques to investigate the impact of international financial integration on economic growth and also to assess whether this relationship depends on the level of economic development, financial development, legal system development, government corruption, and macroeconomic policies. Using a wide array of measures of international financial integration on 57 countries and an assortment of statistical methodologies, we are unable to reject the null hypothesis that international financial integration does not accelerate economic growth even when controlling for particular economic, financial, institutional, and policy characteristics.
Author: Andreas Grün Publisher: Grin Publishing ISBN: 9783656005162 Category : Languages : en Pages : 48
Book Description
Seminar paper from the year 2008 in the subject Business economics - Investment and Finance, grade: 1,0, Otto Beisheim School of Management Vallendar, course: Seminar in International Finance, language: English, abstract: With this paper we intend to contribute to the research that investigates the usefulness of economic policies with regard to financial integration that may stimulate economic growth. After giving a general overview, using a self-developed framework, a more detailed perspective focuses on the crucial link between financial sector development and economic growth that is generally referred to as "growth nexus." After this literature review we conduct our own empirical research that consists of three components: Measuring association/correlation, measuring causality and measuring economic significance. We find that financial development and economic growth are related and that for certain countries the assumption of causality that runs from financial sector integration to economic growth may be justified. Via panel-analysis the estimated OLS-panel-regression shows that a change in the degree of financial depth increases the overall per capita GDP of the OECD- countries that are included in the panel. So the hypothesis that financial integration stimulates economic growth cannot be falsified: We are unable to break the link between financial development and economic growth. There is no doubt that the numerous open questions with regard to this complex matter will cause a lot of additional research in this field of study in the next years. We are excited to see the results!
Author: Rajib Bhattacharyya Publisher: Emerald Group Publishing ISBN: 1838670068 Category : Business & Economics Languages : en Pages : 201
Book Description
Geared towards policy makers, researchers, academics, and business and management professionals, The Gains and Pains of Financial Integration and Trade Liberalization helps readers develop new theories and models for analysing the future trends in finance and trade-related issues.
Author: Mr.Gian Milesi-Ferretti Publisher: International Monetary Fund ISBN: 1451850905 Category : Business & Economics Languages : en Pages : 46
Book Description
In recent decades, the foreign assets and liabilities of advanced economies have grown rapidly relative to GDP, with the increase in gross cross-holdings far exceeding changes in the size of net positions. Moreover, the portfolio equity and FDI categories have grown in importance relative to international debt stocks. This paper describes the broad trends in international financial integration for a sample of industrial countries and seeks to explain the cross-country and time-series variation in the size of international balance sheets. It also examines the behavior of the rates of return on foreign assets and liabilities, relating them to "market" returns.
Author: Luc Eyraud Publisher: International Monetary Fund ISBN: 1475568681 Category : Business & Economics Languages : en Pages : 32
Book Description
The timing is ripe to pursue greater regional financial integration in Latin America given the withdrawal of some global banks from the region and the weakening of growth prospects. Important initiatives are ongoing to foster financial integration. Failure to capitalize on this would represent a significant missed opportunity. This paper examines the scope for further global and regional financial integration in Latin America, based on economic fundamentals and comparisons to other emerging regions, and quantifies the potential macroeconomic gains that such integration could bring. The analysis suggests that closing the financial integration gap could boost GDP growth be 1⁄4 - 3⁄4 percentage point in these countries, on average.
Author: Sanjay Sehgal Publisher: Taylor & Francis ISBN: 1000202798 Category : Business & Economics Languages : en Pages : 199
Book Description
This book analyses the current state and potential of economic and financial integration in South Asia, which has emerged as one of the most dynamic regions of the world. It looks at how regional convergences and cooperation would reinforce ties amongst the diverse economies of South Asia in the changing global economic landscape. Drawing on empirical research, the book looks at the degree of economic and financial integration in South Asia, which according to the World Bank includes the least integrated regions in the world, and explores the fundamental factors that drive integration amongst these countries. It offers important insights into the financial landscape of the region, as well as the dynamics of the interlinkages in the banking system, the stock markets, and the debt markets. The book examines the role of bilateral trade in augmenting regional economic ties, the opportunities for growth these will foster, and the major challenges and roadblocks for the leaders of the region. It also provides an overview of China’s role in South Asia’s financial integration and the interdependence of these economies for economic opportunities, macroeconomic and financial stability, jobs, sustainable growth, and inclusive development. Detailed and insightful, this book will be of great interest to investors and regional policymakers. It will also be of interest to researchers and students of economics, public and foreign policy, finance, international relations, and South Asia studies.
Author: César Calderón Publisher: World Bank Publications ISBN: Category : Economic development Languages : en Pages : 44
Book Description
External exposure can be measured by the sensitivity of first and second moments of economic growth to openness and foreign shocks. This paper provides an empirical evaluation of external exposure using panel data methods for a worldwide sample of countries. Controlling for domestic conditions, the paper examines the growth and volatility effects of outcome measures of trade and financial integration, as well as four types of foreign shocks: terms of trade changes, trading partners' growth rates, international real interest rate changes, and net regional capital inflows. The paper analyzes the possibility of nonlinearities by allowing the growth and volatility effects of openness to vary with the general level of economic development and by letting the effects of foreign shocks depend on the degree of trade and financial integration. The findings point toward strong non-monotonic effects of openness and external shocks on growth and volatility. Moreover, all in all, the results contradict the view that international integration increases external vulnerability by hurting growth and increasing volatility or by amplifying the adverse effect of external shocks.
Author: Xuan Vinh Vo
Author: Xuan Vinh Vo
Author: Hali J. Edison
Author: Andreas Grün
Author: Rajib Bhattacharyya
Author: Shandre Thangavelu
Author: Mr.Gian Milesi-Ferretti
Author: Luc Eyraud
Author: Sanjay Sehgal
Author: César Calderón
Author: Xiu Yang