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The Drivers of Financial Globalization

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  • Philip R. Lane
  • Gian Maria Milesi-Ferretti

Abstract

We provide a brief review and analysis of recent trends in international financial integration. In particular, we highlight the asymmetric nature of financial globalization, with the scale of cross-border positions among the advanced economies growing more quickly than for emerging market economies and developing countries. We investigate the sources of this divergent pattern and discuss the factors that could shape financial globalization in the coming years.
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Suggested Citation

  • Philip R. Lane & Gian Maria Milesi-Ferretti, 2008. "The Drivers of Financial Globalization," American Economic Review, American Economic Association, vol. 98(2), pages 327-332, May.
  • Handle: RePEc:aea:aecrev:v:98:y:2008:i:2:p:327-32
    Note: DOI: 10.1257/aer.98.2.327
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.98.2.327
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    References listed on IDEAS

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    1. Maurice Obstfeld & Kenneth Rogoff, 2001. "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 339-412, National Bureau of Economic Research, Inc.
    2. Romain Rancière & Aaron Tornell & Frank Westermann, 2008. "Systemic Crises and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 123(1), pages 359-406.
    3. Sylvester Eijffinger & Jan J.G. Lemmen (ed.), 2003. "International Financial Integration," Books, Edward Elgar Publishing, volume 0, number 2093.
    4. Hélène Rey & Philippe Martin, 2006. "Globalization and Emerging Markets: With or Without Crash?," American Economic Review, American Economic Association, vol. 96(5), pages 1631-1651, December.
    5. Martin, Philippe & Rey, Helene, 2004. "Financial super-markets: size matters for asset trade," Journal of International Economics, Elsevier, vol. 64(2), pages 335-361, December.
    6. repec:spo:wpecon:info:hdl:2441/9261 is not listed on IDEAS
    7. Gian Maria Milesi-Ferretti, & Philip R. Lane, 2003. "International Financial Integration," The Institute for International Integration Studies Discussion Paper Series iiisdp03, IIIS.
    8. Martin, Philippe & Rey, Helene, 2004. "Financial super-markets: size matters for asset trade," Journal of International Economics, Elsevier, vol. 64(2), pages 335-361, December.
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    JEL classification:

    • F30 - International Economics - - International Finance - - - General

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