TY  - JOUR
AU  - Kose,M. Ayhan
AU  - Prasad,Eswar
AU  - Rogoff,Kenneth S.
AU  - Wei,Shang-Jin
TI  - Financial Globalization: A Reappraisal
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12484
PY  - 2006
Y2  - August 2006
UR  - http://www.nber.org/papers/w12484
L1  - http://www.nber.org/papers/w12484.pdf
N1  - Author contact info:
M. Ayhan Kose
Research Department
International Monetary Fund
700 19th Street, N.W.
Washington, DC 20431
E-Mail: akose@imf.org

Eswar S. Prasad
Dyson School of Applied Economics and
Management
Cornell University
440 Warren Hall
Ithaca, NY 14853
Tel: 607/255-5687
Fax: 607/255-9984
E-Mail: eswar.prasad@cornell.edu

Kenneth S. Rogoff
Thomas D Cabot Professor of Public Policy
Economics Department
Harvard University
Littauer Center 216
Cambridge, MA 02138-3001
Tel: 617-495-4022
Fax: 617/495-7730
E-Mail: krogoff@harvard.edu

Shang-Jin Wei
Graduate School of Business
Columbia University
Uris Hall 619
3022 Broadway
New York, NY 10027-6902
Tel: 212/854-9139
E-Mail: shangjin.wei@columbia.edu
AB  - The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years, but along many disparate channels with a variety of apparently conflicting results. We attempt to provide a unified conceptual framework for organizing this vast and growing literature. This framework allows us to provide a fresh synthetic perspective on the macroeconomic effects of financial globalization, both in terms of growth and volatility. Overall, our critical reading of the recent empirical literature is that it lends some qualified support to the view that developing countries can benefit from financial globalization, but with many nuances. On the other hand, there is little systematic evidence to support widely-cited claims that financial globalization by itself leads to deeper and more costly developing country growth crises.
ER  -