Abstract | Keywords | Export | Availability | Bookmark

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This study expands the empirical specification of Cerra and Saxena (2008), and allows short-term output growth regimes to be determined by globalization. Relying on a non-linear dynamic panel representation, it reconciles the earlier results in the literature regarding the two opposite narratives of the effects of globalization on output growth. Countries experience higher growth, on average, the more open and integrated they are into the world. However, once they reach a certain globalization threshold (endogenously estimated), countries may also experience a new normal, persistently lower short-term output growth following a financial crisis. The benefits, as well as vulnerabilities, accrue earlier in the globalization process for low- and middle-income countries. To solely reap the globalization benefits on growth, sound policies should be in place to mitigate the negative effects stemming from increased vulnerabilities brought by globalization.

Banks and Banking --- Finance: General --- Financial Risk Management --- Macroeconomics --- Globalization --- International Finance: General --- Economic Growth of Open Economies --- Globalization: Macroeconomic Impacts --- Globalization: Finance --- Globalization: General --- Financial Crises --- Macroeconomics: Production --- General Financial Markets: General (includes Measurement and Data) --- Economic & financial crises & disasters --- Finance --- Production growth --- Financial crises --- Banking crises --- Stock markets --- Production --- Financial markets --- Economic theory --- Stock exchanges --- United States