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The Impact of Financial Openness on Economic Integration: Evidence from the Europe and the Cis

Author

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  • Fabrizio Carmignani

    (Economic Analysis Division, United Nations Economic Commission for Europe (UNECE))

  • Abdur Chowdhury

    (Economic Analysis Division, United Nations Economic Commission for Europe (UNECE))

Abstract

We study whether financial openness facilitates the economic integration of formerly centrally planned economies with the EU-15. Two dimensions of economic integration are considered: cross-country convergence of per-capita incomes and bilateral trade in goods and services. We find that more financially open economies effectively catch-up faster and trade more with the EU-15. These integrationenhancing effects occur over and above any effect stemming from domestic financial deepening and other factors determining growth and trade.

Suggested Citation

  • Fabrizio Carmignani & Abdur Chowdhury, 2005. "The Impact of Financial Openness on Economic Integration: Evidence from the Europe and the Cis," Working Papers 88, University of Milano-Bicocca, Department of Economics, revised Apr 2005.
    • Handle: RePEc:mib:wpaper:88
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    References listed on IDEAS

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    Cited by:

    1. Xiangsheng Dou & Xiangsheng Dou, 2016. "Measure and Evaluation of Financial Openness in China," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 985-994.

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    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F30 - International Economics - - International Finance - - - General
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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