- (2010): âChapter 3: Developing local currency ïnance,â Transition Report 2010.
Paper not yet in RePEc: Add citation now
- 4. Finally, we drop countries that on average received development aid of more than 15 percent of GDP over the period 1994 to 2008 to focus on the growth eïects of private capital ïows. A.2 Sectoral data Output growth We use industry output data from the 3rd revision of the Industrial Statistics Database with 4-digit level International Standard Industrial Classiïcation of All Economic Activities (ISIC codes) provided by the United Nations Industrial Development Organization (UNIDO). To calculate real output growth, we deïate output in current prices in national currencies, using national GDP deïators from the International Financial Statistics database.
Paper not yet in RePEc: Add citation now
Abiad, A., D. Leigh, and A. Mody (2009): âFinancial integration, capital mobility, and income convergence,â Economic Policy, 24, 241â305.
- Beck, T., A. Demirguc-Kunt, and R. Levine (2000): âA New Database on Financial Development and Structure,â World Bank Economic Review, 14, 597â605.
Paper not yet in RePEc: Add citation now
Beckfield, J. (2006): âEuropean Integration and Income Inequality,â American Sociological Review, 71, 964â85.
Bekaert, G., C. R. Harvey, and C. Lundblad (2005): âDoes ïnancial liberalization spur growth?,â Journal of Financial Economics, 77, 3â55.
Berglof, E., Y. Korniyenko, A. Plekhanov, and J. Zettelmeyer (2009): âUnderstanding the crisis in emerging Europe,â EBRD Working Paper, European Bank for Reconstruction and Development, London.
Bonfiglioli, A. (2008): âFinancial integration, productivity and capital accumulation,â Journal of International Economics, 76(2), 337â355.
- Bordo, M., and C. Meissner (2009): âFinancial Crisis Database,â Rutgers University, http://michael.bordo.googlepages.com/home3.
Paper not yet in RePEc: Add citation now
Borensztein, E., J. De Gregorio, and J.-W. Lee (1998): âHow does foreign direct investment aïect economic growth?,â Journal of International Economics, 45(1), 115â 135.
Brezigar-Masten, A., F. Coricelli, and I. Masten (2008): âNon-linear growth eïects of ïnancial development: Does ïnancial integration matter?,â Journal of International Money and Finance, 27(2), 295â313.
Campos, N. F., and F. Coricelli (2009): âFinancial Liberalization and Democracy: The Role of Reform Reversals,â CEPR Discussion Paper No. 7393.
- Claessens, S., N. Van Horen, T. Gurcanlar, and M. J. Sapiain (2008): âForeign bank presence in developing countries 1995-2006: data and trends,â available at SSRN: http://ssrn.com/abstract=1107295.
Paper not yet in RePEc: Add citation now
De Haas, R. T., and I. P. van Lelyveld (2010): âInternal Capital Markets and Lending by Multinational Bank Subsidiaries,â Journal of Financial Intermediation, 19(1), 1â25.
De Nicol`o, G., and L. Juvenal (2010): âFinancial integration and risk-adjusted growth opportunities: a global perspective,â Discussion paper.
- Dreher, A. (2006): âDoes Globalization Aïect Growth? Evidence from a new Index of Globalization,â Applied Economics, 38(10), 1091â1110.
Paper not yet in RePEc: Add citation now
- Dreher, Axel, N. G., and P. Martens (2008): Measuring Globalisation - Gauging its Consequences. New York: Springer.
Paper not yet in RePEc: Add citation now
Edwards, S. (1998): âOpenness, Productivity and Growth: What Do We Really Know?,â Economic Journal, 108(447), 383â398.
Ekinci, M. F., S. Kalemli-Ozcan, and B. Sorensen (2008): âFinancial Integration within EU Countries: The Role of Institutions, Conïdence and Trust,â in NBER International Seminar on Macroeconomics 2007, ed. by R. Clarida, J. Frankel, F. Giavazzi, and K. West.
- European Bank for Reconstruction and Development (2009): âChapter 3: Development based on ïnancial integration?,â Transition Report 2009.
Paper not yet in RePEc: Add citation now
Fabrizio, S., D. Leigh, and A. Mody (2009): âThe Second Transition: Eastern Europe in Perspective,â IMF Working Papers 09/43, International Monetary Fund.
- For each dimension of political integration, a subindex is constructed that ranges from 0 to 10, where a value of 10 denotes the highest level of political integration. By assigning a weight to each subindex, we construct the composite index of political integration. Nye (1968) does not suggest any weighting scheme. We decided to give the highest weight to the institutional and the policy dimensions (30 and 40 %, respectively), and somewhat smaller weights to the softer factors as attitude (20%) and political stability (10%). The results are not sensitive to this choice.29 In the following, the construction of each subindex is described in detail.
Paper not yet in RePEc: Add citation now
Gourinchas, P.-O., and O. Jeanne (2007): âCapital Flows to Developing Countries: The Allocation Puzzle,â NBER Working Papers 13602, National Bureau of Economic Research, Cambridge, MA.
Guiso, L., T. Jappelli, M. Padula, and M. Pagano (2004): âFinancial market integration and economic growth in the EU,â Economic Policy, 19(40), 523â577.
Herrmann, S., and D. Mihaljek (2010): âThe Determinants of Cross-Border Bank Flows to Emerging Markets: New Empirical Evidence on the Spread of Financial Crises,â BIS Working Paper 315, Bank for International Settlements (BIS).
Hoxha, I., S. Kalemli-Ozcan, and D. Vollrath (2009): âHow Big are the Gains from International Financial Integration,â NBER Working Papers 14636, National Bureau of Economic Research, Cambridge, MA.
- Imbs, J. (2009): âDiscussion of Abiad et al. 2009,â Economic Policy, 24, 241â305.
Paper not yet in RePEc: Add citation now
- International Monetary Fund (2009/2010): âWorld Economic Outlook (WEO) Database,â Washington, D.C. Jones, M. T., and M. Obstfeld (2001): âSaving, Investment, and Gold: A Reassessment of Historical Current Account Data,â in Money, Capital Mobility, and Trade: Essays in Honor of Robert Mundell, ed. by G. A. Calvo, R. Dornbusch, and M. Obstfeld. Cambridge, MA: MIT Press.
Paper not yet in RePEc: Add citation now
- Kose, A. M., E. S. Prasad, and M. E. Terrones (2009): âDoes openness to international ïnancial ïows raise productivity growth?,â Journal of International Money and Finance, 28, 554â580.
Paper not yet in RePEc: Add citation now
Kose, A. M., E. S. Prasad, K. Rogoff, and S.-J. Wei (2010): âFinancial Globalization and Economic Policies,â in Handbook of Development Economics, Volume 5, ed. by D. Rodrik, and M. R. Rosenzweig, pp. 4283â4362.
Kose, M. A., E. Prasad, K. Rogoff, and S.-J. Wei (2009): âFinancial Globalization: A Reappraisal,â IMF Staï Papers, 56(1), 8â62.
Kose, M. A., E. S. Prasad, and A. D. Taylor (2009): âThresholds in the Process of International Financial Integration,â NBER Working Papers 14916, National Bureau of Economic Research, Cambridge, MA.
Lane, P. R., and G. M. Milesi-Ferretti (2007): âThe external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970-2004,â Journal of International Economics, 73(2), 223â250.
Lucas, R. E. (1990): âWhy Doesnât Capital Flow from Rich to Poor Countries?,â American Economic Review, 80(2), 92â96.
Nye, J. (1968): âComparative Regional Integration: Concept and Measurement,â International Organization, 22(4), 855â880.
Prasad, E. S., R. G. Rajan, and A. Subramanian (2007): âForeign Capital and Economic Growth,â Brookings Papers on Economic Activity, 38(2007-1), 153â230.
Pritchett, L. (1996): âMeasuring outward orientation in LDCs: Can it be done?,â Journal of Development Economics, 49(2), 307â335.
Rajan, R. G., and L. Zingales (1998): âFinancial Dependence and Growth,â American Economic Review, 88(3), 559â86.
- The Political stability dimension (10 %) Nye (1968) recommended using the number of hostile incidents over a speciïed period. We do not ïnd this concept appropriate, therefore we use instead the Political Stability and Absence of Violence index from the World Bankâs Worldwide Governance Indicators (WGI) for the years 1998 till 2005. For each country, we compute an average value of the Political Stability and Absence of Violence index over this period. The original index ranges from-2.5 to 2.5 and thus has to be multiplied by 2 and augmented by 5 to ït into the 0 to 10 scale of our index. A.4 Appendix graphs and tables
Paper not yet in RePEc: Add citation now
- UNIDO (United Nations Industrial Development Organization) (2009): âINDSTATA4 2009 ISIC Rev.2 and Rev.3,â Vienna.
Paper not yet in RePEc: Add citation now
- World Bank (2008): âWorldwide Governance Indicators (WGI),â Washington, D.C., The World Bank Group.
Paper not yet in RePEc: Add citation now