International Finance and Growth in Developing Countries : What Have We Learned?
Despite an abundance of cross-section, panel, and event studies, there is strikingly little convincing documentation of direct positive impacts of financial opening on the economic welfare levels or growth rates of developing countries. The econome...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/546061468146057858/International-finance-and-growth-in-developing-countries-what-have-we-learned http://hdl.handle.net/10986/28029 |
| id |
okr-10986-28029 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGENCY PROBLEM ALLOCATION OF CAPITAL ASSET POSITIONS ASYMMETRIC INFORMATION BAILOUT BALANCE SHEET BALANCE SHEETS BANK FINANCING BANK REGULATIONS BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING SECTOR BIDS BORROWING COST BORROWING COSTS CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNTS CAPITAL ASSET PRICING CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL MARKETS CAPITAL MOBILITY CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CENTRAL BANK INDEPENDENCE COLLATERAL COMMODITY PRICES CONSUMER DURABLE CORPORATE GOVERNANCE CORPORATE INSIDERS COUNTRY RISK CREDIBILITY CREDIT GROWTH CREDIT RISK CRISIS COUNTRIES CURRENCY CURRENCY COMPOSITION CURRENCY CRISIS CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY MISMATCHES CURRENCY RISK CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEFAULT PROBABILITIES DEFICITS DEPOSIT DERIVATIVES DERIVATIVES MARKETS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC EQUITY DOMESTIC FINANCIAL MARKETS DURABLE GOOD ECONOMIC EFFICIENCY ECONOMIC RISKS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMY EMERGING MARKETS ENFORCEMENT SYSTEM EQUITY HOLDING EQUITY INVESTMENT EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY RETURNS EQUITY STAKE EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXOGENOUS RATE EXPORTERS EXPROPRIATION EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICITS FACE VALUE FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FLOWS FINANCIAL FRAGILITY FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM PERFORMANCE FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FIXED EXCHANGE RATE FIXED EXCHANGE RATES FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATES FLOATING EXCHANGE RATE FLOATING RATES FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN INVESTOR FOREIGN INVESTORS FREE CAPITAL GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL DEVELOPMENT FINANCE GLOBALIZATION GOVERNANCE STANDARDS GOVERNMENT BORROWING GOVERNMENT BORROWING RATES GOVERNMENT DEBT GOVERNMENT FINANCES GOVERNMENT GUARANTEES GOVERNMENT POLICIES HOME EQUITY HUMAN CAPITAL INCOME VOLATILITY INDIVIDUAL INVESTORS INFLATION INFLATIONARY PRESSURES INFORMATIONAL ASYMMETRIES INSTITUTIONAL DEVELOPMENT INSURANCE INTANGIBLE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL PORTFOLIOS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS INVESTMENT PROJECTS INVESTMENT RATE JUDICIAL ENFORCEMENT LABOR MARKET LIQUIDITY LOCAL STOCK MARKET MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MALFEASANCE MARKET DISCIPLINE MARKET ECONOMY MARKET PARTICIPANTS MATURITIES MONETARY POLICY MONEYLENDERS MORAL HAZARD MORAL HAZARDS MORTGAGE OPEN ECONOMIES POLICY RESPONSE POLITICAL STABILITY PORTFOLIO PRICE CHANGE PRIVATE CAPITAL PRIVATE INVESTMENT PROPERTY RIGHTS PUBLIC DEBT PUBLIC FINANCES PURCHASING POWER REAL EXCHANGE RATE REGULATORY FRAMEWORK REGULATORY STRUCTURE REPAYMENT REPAYMENT OF PRINCIPAL RESERVE RESERVE REQUIREMENT RESERVES RETURN RETURNS RISK SHARING RULE OF LAW SHARE OF EQUITY SHAREHOLDER SHAREHOLDERS SHORT MATURITIES SHORT MATURITY SHORT-TERM DEBT STOCK MARKET STOCK MARKET PRICES TAX TRADE LIBERALIZATIONS TRADING TRANSPARENCY UNDERDEVELOPED FINANCIAL SECTOR WORLD STOCK MARKET |
| spellingShingle |
AGENCY PROBLEM ALLOCATION OF CAPITAL ASSET POSITIONS ASYMMETRIC INFORMATION BAILOUT BALANCE SHEET BALANCE SHEETS BANK FINANCING BANK REGULATIONS BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING SECTOR BIDS BORROWING COST BORROWING COSTS CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNTS CAPITAL ASSET PRICING CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL MARKETS CAPITAL MOBILITY CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CENTRAL BANK INDEPENDENCE COLLATERAL COMMODITY PRICES CONSUMER DURABLE CORPORATE GOVERNANCE CORPORATE INSIDERS COUNTRY RISK CREDIBILITY CREDIT GROWTH CREDIT RISK CRISIS COUNTRIES CURRENCY CURRENCY COMPOSITION CURRENCY CRISIS CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY MISMATCHES CURRENCY RISK CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEFAULT PROBABILITIES DEFICITS DEPOSIT DERIVATIVES DERIVATIVES MARKETS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC EQUITY DOMESTIC FINANCIAL MARKETS DURABLE GOOD ECONOMIC EFFICIENCY ECONOMIC RISKS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMY EMERGING MARKETS ENFORCEMENT SYSTEM EQUITY HOLDING EQUITY INVESTMENT EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY RETURNS EQUITY STAKE EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXOGENOUS RATE EXPORTERS EXPROPRIATION EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICITS FACE VALUE FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FLOWS FINANCIAL FRAGILITY FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM PERFORMANCE FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FIXED EXCHANGE RATE FIXED EXCHANGE RATES FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATES FLOATING EXCHANGE RATE FLOATING RATES FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN INVESTOR FOREIGN INVESTORS FREE CAPITAL GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL DEVELOPMENT FINANCE GLOBALIZATION GOVERNANCE STANDARDS GOVERNMENT BORROWING GOVERNMENT BORROWING RATES GOVERNMENT DEBT GOVERNMENT FINANCES GOVERNMENT GUARANTEES GOVERNMENT POLICIES HOME EQUITY HUMAN CAPITAL INCOME VOLATILITY INDIVIDUAL INVESTORS INFLATION INFLATIONARY PRESSURES INFORMATIONAL ASYMMETRIES INSTITUTIONAL DEVELOPMENT INSURANCE INTANGIBLE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL PORTFOLIOS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS INVESTMENT PROJECTS INVESTMENT RATE JUDICIAL ENFORCEMENT LABOR MARKET LIQUIDITY LOCAL STOCK MARKET MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MALFEASANCE MARKET DISCIPLINE MARKET ECONOMY MARKET PARTICIPANTS MATURITIES MONETARY POLICY MONEYLENDERS MORAL HAZARD MORAL HAZARDS MORTGAGE OPEN ECONOMIES POLICY RESPONSE POLITICAL STABILITY PORTFOLIO PRICE CHANGE PRIVATE CAPITAL PRIVATE INVESTMENT PROPERTY RIGHTS PUBLIC DEBT PUBLIC FINANCES PURCHASING POWER REAL EXCHANGE RATE REGULATORY FRAMEWORK REGULATORY STRUCTURE REPAYMENT REPAYMENT OF PRINCIPAL RESERVE RESERVE REQUIREMENT RESERVES RETURN RETURNS RISK SHARING RULE OF LAW SHARE OF EQUITY SHAREHOLDER SHAREHOLDERS SHORT MATURITIES SHORT MATURITY SHORT-TERM DEBT STOCK MARKET STOCK MARKET PRICES TAX TRADE LIBERALIZATIONS TRADING TRANSPARENCY UNDERDEVELOPED FINANCIAL SECTOR WORLD STOCK MARKET Obstfeld, Maurice International Finance and Growth in Developing Countries : What Have We Learned? |
| relation |
Commission on Growth and Development Working Paper;No. 34 |
| description |
Despite an abundance of cross-section,
panel, and event studies, there is strikingly little
convincing documentation of direct positive impacts of
financial opening on the economic welfare levels or growth
rates of developing countries. The econometric difficulties
are similar to those that bedevil the literature on trade
openness and growth, though if anything, they are more
severe in the context of international finance. There is
also little systematic evidence that financial opening
raises welfare indirectly by promoting collateral reforms of
economic institutions or policies. At the same time, opening
the financial account does appear to raise the frequency and
severity of economic crises. Nonetheless, developing
countries continue to move in the direction of further
financial openness. A plausible explanation is that
financial development is a concomitant of successful
economic growth, and a growing financial sector in an
economy open to trade cannot long be insulated from
cross?border financial flows. This survey discusses the
policy framework in which financial globalization is most
likely to prove beneficial for developing countries. The
reforms developing countries need to carry out to make their
economies safe for international asset trade are the same
reforms they need to carry out to curtail the power of
entrenched economic interests and liberate the
economy's productive potential. |
| format |
Working Paper |
| author |
Obstfeld, Maurice |
| author_facet |
Obstfeld, Maurice |
| author_sort |
Obstfeld, Maurice |
| title |
International Finance and Growth in Developing Countries : What Have We Learned? |
| title_short |
International Finance and Growth in Developing Countries : What Have We Learned? |
| title_full |
International Finance and Growth in Developing Countries : What Have We Learned? |
| title_fullStr |
International Finance and Growth in Developing Countries : What Have We Learned? |
| title_full_unstemmed |
International Finance and Growth in Developing Countries : What Have We Learned? |
| title_sort |
international finance and growth in developing countries : what have we learned? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/546061468146057858/International-finance-and-growth-in-developing-countries-what-have-we-learned http://hdl.handle.net/10986/28029 |
| _version_ |
1764465991443546112 |
| spelling |
okr-10986-280292021-04-23T14:04:46Z International Finance and Growth in Developing Countries : What Have We Learned? Obstfeld, Maurice AGENCY PROBLEM ALLOCATION OF CAPITAL ASSET POSITIONS ASYMMETRIC INFORMATION BAILOUT BALANCE SHEET BALANCE SHEETS BANK FINANCING BANK REGULATIONS BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING SECTOR BIDS BORROWING COST BORROWING COSTS CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNTS CAPITAL ASSET PRICING CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL MARKETS CAPITAL MOBILITY CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CENTRAL BANK INDEPENDENCE COLLATERAL COMMODITY PRICES CONSUMER DURABLE CORPORATE GOVERNANCE CORPORATE INSIDERS COUNTRY RISK CREDIBILITY CREDIT GROWTH CREDIT RISK CRISIS COUNTRIES CURRENCY CURRENCY COMPOSITION CURRENCY CRISIS CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY MISMATCHES CURRENCY RISK CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT SURPLUS CURRENT ACCOUNT SURPLUSES DEBT DEBT CRISIS DEFAULT PROBABILITIES DEFICITS DEPOSIT DERIVATIVES DERIVATIVES MARKETS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC EQUITY DOMESTIC FINANCIAL MARKETS DURABLE GOOD ECONOMIC EFFICIENCY ECONOMIC RISKS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMY EMERGING MARKETS ENFORCEMENT SYSTEM EQUITY HOLDING EQUITY INVESTMENT EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY RETURNS EQUITY STAKE EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXOGENOUS RATE EXPORTERS EXPROPRIATION EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEFICITS FACE VALUE FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FLOWS FINANCIAL FRAGILITY FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM PERFORMANCE FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FIXED EXCHANGE RATE FIXED EXCHANGE RATES FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATES FLOATING EXCHANGE RATE FLOATING RATES FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN INVESTOR FOREIGN INVESTORS FREE CAPITAL GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL DEVELOPMENT FINANCE GLOBALIZATION GOVERNANCE STANDARDS GOVERNMENT BORROWING GOVERNMENT BORROWING RATES GOVERNMENT DEBT GOVERNMENT FINANCES GOVERNMENT GUARANTEES GOVERNMENT POLICIES HOME EQUITY HUMAN CAPITAL INCOME VOLATILITY INDIVIDUAL INVESTORS INFLATION INFLATIONARY PRESSURES INFORMATIONAL ASYMMETRIES INSTITUTIONAL DEVELOPMENT INSURANCE INTANGIBLE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL PORTFOLIOS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS INVESTMENT PROJECTS INVESTMENT RATE JUDICIAL ENFORCEMENT LABOR MARKET LIQUIDITY LOCAL STOCK MARKET MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MALFEASANCE MARKET DISCIPLINE MARKET ECONOMY MARKET PARTICIPANTS MATURITIES MONETARY POLICY MONEYLENDERS MORAL HAZARD MORAL HAZARDS MORTGAGE OPEN ECONOMIES POLICY RESPONSE POLITICAL STABILITY PORTFOLIO PRICE CHANGE PRIVATE CAPITAL PRIVATE INVESTMENT PROPERTY RIGHTS PUBLIC DEBT PUBLIC FINANCES PURCHASING POWER REAL EXCHANGE RATE REGULATORY FRAMEWORK REGULATORY STRUCTURE REPAYMENT REPAYMENT OF PRINCIPAL RESERVE RESERVE REQUIREMENT RESERVES RETURN RETURNS RISK SHARING RULE OF LAW SHARE OF EQUITY SHAREHOLDER SHAREHOLDERS SHORT MATURITIES SHORT MATURITY SHORT-TERM DEBT STOCK MARKET STOCK MARKET PRICES TAX TRADE LIBERALIZATIONS TRADING TRANSPARENCY UNDERDEVELOPED FINANCIAL SECTOR WORLD STOCK MARKET Despite an abundance of cross-section, panel, and event studies, there is strikingly little convincing documentation of direct positive impacts of financial opening on the economic welfare levels or growth rates of developing countries. The econometric difficulties are similar to those that bedevil the literature on trade openness and growth, though if anything, they are more severe in the context of international finance. There is also little systematic evidence that financial opening raises welfare indirectly by promoting collateral reforms of economic institutions or policies. At the same time, opening the financial account does appear to raise the frequency and severity of economic crises. Nonetheless, developing countries continue to move in the direction of further financial openness. A plausible explanation is that financial development is a concomitant of successful economic growth, and a growing financial sector in an economy open to trade cannot long be insulated from cross?border financial flows. This survey discusses the policy framework in which financial globalization is most likely to prove beneficial for developing countries. The reforms developing countries need to carry out to make their economies safe for international asset trade are the same reforms they need to carry out to curtail the power of entrenched economic interests and liberate the economy's productive potential. 2017-08-28T19:48:06Z 2017-08-28T19:48:06Z 2008 Working Paper http://documents.worldbank.org/curated/en/546061468146057858/International-finance-and-growth-in-developing-countries-what-have-we-learned http://hdl.handle.net/10986/28029 English en_US Commission on Growth and Development Working Paper;No. 34 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |