Nothing Special   »   [go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

Financial Integration, Growth, and Volatility

Anne Epaulard and Aude Pommeret ()

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: The aim of the paper is to evaluate the welfare gains from financial integration for developing and emerging economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and (iii) receive FDI. The model is calibrated on 32 emerging and developing economies for which we evaluate the upper bound for the welfare gain from financial integration. For plausible values of preference parameters and actual levels of financial integration, the mean welfare gain from financial integration is about 10 percent of the existing wealth. Compared to financial autarky, actual levels of financial integration translate into slightly higher annual growth rates (around 0.4 percentage points per year.)

Keywords: financial integration; risk-sharing; endogenous growth; stochastic growth (search for similar items in EconPapers)
JEL-codes: E13 F20 F3 F36 F43 O41 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2004-12
New Economics Papers: this item is included in nep-dev, nep-fin and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.hec.unil.ch/deep/textes/04.18.pdf (application/pdf)

Related works:
Journal Article: Financial Integration, Growth and Volatility (2016) Downloads
Working Paper: Financial Integration, Growth and Volatility (2016) Downloads
Working Paper: Financial Integration, Growth, and Volatility (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:04.18

Access Statistics for this paper

More papers in Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie Université de Lausanne, Faculté des HEC, Département d’économie, Internef, CH-1015 Lausanne. Contact information at EDIRC.
Bibliographic data for series maintained by Christina Seld ().

 
Page updated 2024-12-17
Handle: RePEc:lau:crdeep:04.18