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International Financial Integration and Economic Growth

  • Hali J. Edison
  • Ross Levine
  • Luca Ricci
  • Torsten Slok

This paper uses new data and new econometric techniques to investigate the impact of international financial integration on economic growth and also to assess whether this relationship depends on the level of economic development, financial development, legal system development, government corruption, and macroeconomic policies. Using a wide array of measures of international financial integration on 57 countries and an assortment of statistical methodologies, we are unable to reject the null hypothesis that international financial integration does not accelerate economic growth even when controlling for particular economic, financial, institutional, and policy characteristics.

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File URL: http://www.nber.org/papers/w9164.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9164.

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Date of creation: Sep 2002
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Publication status: published as Edison, Hali J. & Levine, Ross & Ricci, Luca & Slok, Torsten, 2002. "International financial integration and economic growth," Journal of International Money and Finance, Elsevier, vol. 21(6), pages 749-776, November.
Handle: RePEc:nbr:nberwo:9164
Note: IFM
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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