The Evidence and Impact of Financial Globalization

Chapter 19

Collateral Benefits of Financial Globalization

D. Aykut* and M.A. Kose^†

^*World Bank, Washington, DC, USA

^†International Monetary Fund, Washington, DC, USA

Outline

Introduction

What are the Theoretical Arguments for Collateral Benefits?

Financial Sector Development

Institutional Quality and Governance

Macroeconomic Policies

What Does the Empirical Evidence Say?

Financial Sector Development

Institutional Quality and Governance

Macroeconomic Policies

Does Financial Integration Enhance Productivity Growth?

Financial Openness and TFP Growth: FDI and Equity Flows

Financial Openness and TFP Growth: De Jure and De Facto Measures

Why TFP Growth but not Output Growth?

Conclusion

Acknowledgments

References

Introduction

The global financial crisis ...