The Elusive Gains from International Financial Integration

摘要: Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign flows in and speeds up the process of convergence. We show a calibrated neoclassical model conventionally measured welfare gains this type convergence appear limited for typical emerging market country. The gain switching autarky to perfect mobility is roughly equivalent 1% permanent increase domestic consumption non-OECD This negligible relative take-off productivity magnitude observed some these countries.