TY  - BOOK
AU  - Epaulard,Anne
AU  - Pommeret,Aude
TI  - Financial Integration, Growth, and Volatility
T2  - IMF Working Papers; Working Paper
SN  - 1451860862 :
SN  - 1018-5941
PY  - 2005///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Economic Growth of Open Economies
KW  - imf
KW  - Endogenous Growth
KW  - Financial Aspects of Economic Integration
KW  - Financial Markets
KW  - Foreign Assets
KW  - General Aggregative Models: Neoclassical
KW  - Algeria
KW  - Botswana
KW  - Dominican Republic
KW  - El Salvador
KW  - Malaysia
N2  - The aim of this paper is to evaluate the welfare gains from financial integration for developing and emerging market 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 foreign direct investment (FDI). The model is calibrated on 32 emerging market 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 initial wealth. Compared with financial autarky, actual levels of financial integration translate into slightly higher annual growth rates (around 0.4 percentage point per year.)
UR  - http://elibrary.imf.org/view/IMF001/02363-9781451860863/02363-9781451860863/02363-9781451860863.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451860863
ER  -