The Real Effects of Financial Integration
Details
Serval ID
serval:BIB_7C9BA6552639
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
The Real Effects of Financial Integration
Journal
Journal of International Economics
Publication state
Published
Issued date
03/2006
Peer-reviewed
Oui
Volume
68
Number
2
Pages
296-324
Abstract
This paper shows how correlations in GDP fluctuations rise with financial integration. Finance serves to increase international correlations in both consumption and GDP fluctuations, which explains the persistent gap between the two in the data, a ?quantity puzzle?. The positive association between financial integration and GDP correlation constitutes a puzzle, as theory suggests a negative relation if anything. Nevertheless, it prevails in the data even after the effects of finance on trade and specialization are accounted for.
Keywords
Financial integration, International business cycles, Risk sharing, Quantity puzzle
Publisher's website
Create date
19/11/2007 10:35
Last modification date
20/08/2019 14:38