European Parliament Library

International Finance and Income Convergence :, Europe is Different, Daniel Leigh, Abdul Abiad, Ashoka Mody

Recent studies conclude that the ongoing global financial integration may have had little or no value in advancing economic growth, especially in poor countries. Capital is often found to flow "uphill" from poor to rich countries. And, when it does flow into the less developed economies, it is negatively correlated with growth, calling into question the desirability of foreign capital. In this paper we report that Europe-including the new member states of the European Union-provides a counterexample to these global anomalies. With increasing financial integration, capital in Europe has traveled "downhill" from rich to poor countries, and has done so with gathering strength. These inflows have been associated with significant acceleration of income convergence
Table Of Contents
Contents; I. Introduction; Figures; 1. Financial Integration in Different Regions of the World, 1994-2004; 2. Emerging Markets: Current Account Balance, 1998-2005; II. Current Accounts and the Role of Financial Integration; Tables; 1. Average Cross-border Portfolio Holdings of Long Term Debt, 2001-03; 3. Europe: Financial Integration, 1975-2004; A. Empirical Approach; 4. Europe: Dispersion of Current Account Balances, 1975-2005; B. Estimation Results; 2. Benchmark Current Account Regressions, Global and European Samples
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (38 p.)
Specific Material Designation
Form Of Item

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