Title
Multiple equilibria in the dynamics of financial globalization Multiple equilibria in the dynamics of financial globalization
Author
Faculty/Department
Faculty of Applied Economics
Institute of Development Policy and Management
Publication type
report
Publication
London :World Economy and Finance Programme, [*]
Subject
Economics
Source (series)
WEF working paper series; 44
Volume/pages
26 p.,
ISSN
1749-8279
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
It is often argued that financial globalization involves threshold effects: countries should have a minimum level of preconditions in place before they can reap the benefits of financial integration. We investigate what this means for the dynamics of de facto financial globalization, using recently developed threshold and sample splitting methods. We find that there are indeed signs of multiple equilibria in the dynamics of financial integration. We confirm that the main cause for these non-linearities is the quality of the institutional context, as measured by corruption, investment profile, capital account balance and aggregate growth prospects
Full text (open access)
https://repository.uantwerpen.be/docman/irua/755a89/3940.pdf
Handle