Understanding the mechanism through which financial globalization affects economic performance is crucial for evaluating the costs and benefits of opening financial markets. This paper is a first attempt at disentangling the effects of financial integration on the two main determinants of economic performance: productivity (TFP) and investment. I provide empirical evidence from a sample of 70 countries observed between 1975 and 1999. The results for both de jure and de facto indicators suggest that financial integration has a positive direct effect on productivity, while it does not directly affect capital accumulation. I also control for indirect effects of financial globalization through financial development and banking and currency crises. While financial integration does not systematically increase domestic financial depth, it may raise the likelihood of banking crises, though only to a minor extent. Yet, the overall effect of financial liberalization remains positive for productivity and negligible for investment. © 2008 Elsevier B.V. All rights reserved.

(2008). Financial integration, productivity and capital accumulation [journal article - articolo]. In JOURNAL OF INTERNATIONAL ECONOMICS. Retrieved from http://hdl.handle.net/10446/228201

Financial integration, productivity and capital accumulation

Bonfiglioli, Alessandra
2008

Abstract

Understanding the mechanism through which financial globalization affects economic performance is crucial for evaluating the costs and benefits of opening financial markets. This paper is a first attempt at disentangling the effects of financial integration on the two main determinants of economic performance: productivity (TFP) and investment. I provide empirical evidence from a sample of 70 countries observed between 1975 and 1999. The results for both de jure and de facto indicators suggest that financial integration has a positive direct effect on productivity, while it does not directly affect capital accumulation. I also control for indirect effects of financial globalization through financial development and banking and currency crises. While financial integration does not systematically increase domestic financial depth, it may raise the likelihood of banking crises, though only to a minor extent. Yet, the overall effect of financial liberalization remains positive for productivity and negligible for investment. © 2008 Elsevier B.V. All rights reserved.
articolo
Bonfiglioli, Alessandra
(2008). Financial integration, productivity and capital accumulation [journal article - articolo]. In JOURNAL OF INTERNATIONAL ECONOMICS. Retrieved from http://hdl.handle.net/10446/228201
File allegato/i alla scheda:
File Dimensione del file Formato  
JIE-2008.pdf

Solo gestori di archivio

Versione: publisher's version - versione editoriale
Licenza: Licenza default Aisberg
Dimensione del file 333.42 kB
Formato Adobe PDF
333.42 kB Adobe PDF   Visualizza/Apri
988.pdf

embargo fino al 14/08/2010

Versione: postprint - versione referata/accettata senza referaggio
Licenza: Creative commons
Dimensione del file 305.94 kB
Formato Adobe PDF
305.94 kB Adobe PDF Visualizza/Apri
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

Aisberg ©2008 Servizi bibliotecari, Università degli studi di Bergamo | Terms of use/Condizioni di utilizzo

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10446/228201
Citazioni
  • Scopus 126
  • ???jsp.display-item.citation.isi??? 99
social impact