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The post-crises output growth effects in a globalized economy

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  • Candelon, Bertrand
  • Carare, Alina
  • Hasse, Jean-Baptiste
  • Lu, Jing

Abstract

This paper investigates the persistent impact of financial crises on economic growth in different regimes of globalization. Relying on a nonlinear dynamic panel representation, this paper explains why the effects of globalization on growth weave into a tale of two opposite narratives. On average, a country experiences higher growth, the more open and integrated it is into the world. However, countries can also experience persistently lower medium-term output growth after a financial crisis, once globalization reaches a certain threshold. The benefits, as well as vulnerabilities, accrue earlier in the globalization process for low-income countries.

Suggested Citation

  • Candelon, Bertrand & Carare, Alina & Hasse, Jean-Baptiste & Lu, Jing, 2020. "The post-crises output growth effects in a globalized economy," International Economics, Elsevier, vol. 161(C), pages 139-158.
    • Handle: RePEc:eee:inteco:v:161:y:2020:i:c:p:139-158
    DOI: 10.1016/j.inteco.2019.11.011
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    2. Liviu Serbanescu, 2022. "Bank Systemic Risk and Macroprudential Policy," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 431-436, September.
    3. Jean-Baptiste Hasse & Christelle Lecourt & Souhila Siagh, 2023. "Institutional Stock-Bond Portfolios Rebalancing and Financial Stability," AMSE Working Papers 2322, Aix-Marseille School of Economics, France.
    4. Jean-Baptiste Hasse, 2022. "Systemic risk: a network approach," Empirical Economics, Springer, vol. 63(1), pages 313-344, July.
    5. Samuel Tawiah Baidoo & Daniel Sakyi & Enock Kojo Ayesu & Grace Nkansa Asante & John Bosco Dramani, 2023. "Estimating the effect of economic globalization on welfare in Africa," SN Business & Economics, Springer, vol. 3(9), pages 1-25, September.
    6. Jean-Baptiste Hasse, 2020. "Systemic Risk: a Network Approach," Working Papers halshs-02893780, HAL.

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    More about this item

    Keywords

    Globalization; Financial crises; Output growth;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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