Effect of Globalization on Other Countries
Some Empirical Evidence
This paper provides a review of recent empirical evidence, including some new
research, on the effects of financial globalization for developing economies. The paper
focuses on three questions:
(i) Does financial globalization promote economic growth in developing countries?
(ii) What is its impact on macroeconomic volatility in these countries?
(iii) What factors can help to harness the benefits of financial globalization?
About the Authors
Tolani Senior Professor of Trade Policy
Professor, Department of Economics
The Jerome A. Chazen Institute of International Business
M. Ayhan Kose
Economist, Financial Studies Division
International Monetary Fund