Financial Globalization in Emerging Economies : Much Ado about Nothing?

Yeyati, Eduardo Levy; Williams, Tomas

dc.creator	Yeyati, Eduardo Levy
dc.creator	Williams, Tomas
dc.date	2012-03-19T18:01:37Z
dc.date	2012-03-19T18:01:37Z
dc.date	2011-04-01
dc.date.accessioned	2023-02-17T20:55:51Z
dc.date.available	2023-02-17T20:55:51Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110405092056
dc.identifier	http://hdl.handle.net/10986/3390
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244354
dc.description	Financial globalization, defined as global linkages through cross-border financial flows, has become increasingly relevant for emerging markets as they integrate financially with the rest of the world. This paper argues that, because of the way it is often measured, it has also led to the misperception that financial globalization in emerging markets has been growing in recent years. The authors characterize the evolution of financial globalization in emerging markets using alternative measures, and find that, in the 2000s, financial globalization has grown only marginally and international portfolio diversification has been limited and declining over time. The paper revisits the empirical literature on the implications of financial globalization for local market deepening, international risk diversification, financial contagion, and financial dollarization, and finds them to be rather limited. Whereas financial globalization has indeed fostered domestic market deepening in good times, it has yielded neither the dividends of consumption smoothing (in line with limited portfolio diversification) nor the costs of amplifying global financial shocks. In turn, financial de-dollarization has largely reflected the undoing of financial offshoring and the valuation effects of real appreciation.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5624
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADVANCED COUNTRIES
dc.subject	ADVANCED ECONOMIES
dc.subject	ARBITRAGE
dc.subject	ASSET HOLDINGS
dc.subject	ASSET POSITIONS
dc.subject	ASSET PRICE
dc.subject	ASSET PRICES
dc.subject	ASSET TYPE
dc.subject	BALANCE OF PAYMENTS
dc.subject	BALANCE SHEETS
dc.subject	BANK DEPOSITS
dc.subject	BANKING SECTOR
dc.subject	BENCHMARKS
dc.subject	BOND
dc.subject	BOND FUNDS
dc.subject	BUSINESS CYCLE
dc.subject	CAPITAL ACCOUNT
dc.subject	CAPITAL ACCOUNT LIBERALIZATION
dc.subject	CAPITAL CONTROLS
dc.subject	CAPITAL FLIGHT
dc.subject	CAPITAL FLOW
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL MOBILITY
dc.subject	CAPITAL OUTFLOWS
dc.subject	CAPITAL REPATRIATION
dc.subject	CAPITAL STOCK
dc.subject	CDS
dc.subject	CENTRAL BANK
dc.subject	CONSUMPTION SMOOTHING
dc.subject	CORPORATE DEBT
dc.subject	CREDIT RISKS
dc.subject	CREDIT SPREADS
dc.subject	CRISIS COUNTRY
dc.subject	CROSS-BORDER FLOWS
dc.subject	CROSS-BORDER INVESTMENTS
dc.subject	CURRENCY
dc.subject	CURRENCY MISMATCHES
dc.subject	CURRENCY RISK
dc.subject	DEBT
dc.subject	DEBT FLOWS
dc.subject	DEBT HOLDINGS
dc.subject	DEBT INSTRUMENTS
dc.subject	DEBT RATIOS
dc.subject	DEBT SECURITIES
dc.subject	DEBTS
dc.subject	DEGREE OF RISK
dc.subject	DEPOSIT
dc.subject	DERIVATIVES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING COUNTRY
dc.subject	DEVELOPING ECONOMIES
dc.subject	DEVELOPING MARKETS
dc.subject	DEVELOPMENT BANK
dc.subject	DIVERSIFICATION BENEFITS
dc.subject	DIVERSIFIED PORTFOLIO
dc.subject	DIVIDENDS
dc.subject	DOMESTIC ECONOMY
dc.subject	DOMESTIC EQUITY
dc.subject	DOMESTIC FINANCIAL MARKETS
dc.subject	DOMESTIC MARKET
dc.subject	DOMESTIC MARKETS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC PERFORMANCE
dc.subject	ECONOMIC POLICIES
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKETS
dc.subject	EQUITIES
dc.subject	EQUITY FLOWS
dc.subject	EQUITY HOLDINGS
dc.subject	EQUITY INDEXES
dc.subject	EQUITY INSTRUMENTS
dc.subject	EQUITY MARKET
dc.subject	EQUITY MARKET CAPITALIZATION
dc.subject	EQUITY MARKETS
dc.subject	EQUITY PORTFOLIO
dc.subject	EQUITY PORTFOLIOS
dc.subject	EQUITY PRICE
dc.subject	EQUITY PRICES
dc.subject	EQUITY RETURNS
dc.subject	EQUITY VALUATION
dc.subject	EXCHANGE RATES
dc.subject	EXPOSURE
dc.subject	EXTERNAL DEBT
dc.subject	FINANCIAL ASSETS
dc.subject	FINANCIAL CONTAGION
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL FLOWS
dc.subject	FINANCIAL FRAGILITY
dc.subject	FINANCIAL INNOVATION
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL OPENNESS
dc.subject	FINANCIAL PORTFOLIOS
dc.subject	FINANCIAL RISK
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SHOCKS
dc.subject	FINANCIAL STABILITY
dc.subject	FIXED INCOME
dc.subject	FIXED INCOME MARKETS
dc.subject	FIXED INCOME SECURITIES
dc.subject	FLOWS OF CAPITAL
dc.subject	FOREIGN ASSET
dc.subject	FOREIGN ASSETS
dc.subject	FOREIGN CAPITAL
dc.subject	FOREIGN DEBT
dc.subject	FOREIGN EQUITY
dc.subject	FOREIGN HOLDINGS
dc.subject	FOREIGN INFLOWS
dc.subject	FOREIGN INVESTMENT
dc.subject	FOREIGN LENDERS
dc.subject	FOREIGN PORTFOLIO
dc.subject	FOREIGN SHARE
dc.subject	GLOBAL DIVERSIFICATION
dc.subject	GLOBAL EQUITY
dc.subject	GLOBAL FUND
dc.subject	GLOBAL FUNDS
dc.subject	GLOBAL MARKET
dc.subject	GLOBAL MUTUAL FUNDS
dc.subject	GLOBAL PORTFOLIO
dc.subject	GLOBAL RISK
dc.subject	GLOBALIZATION
dc.subject	GROWTH RATE
dc.subject	GROWTH RATES
dc.subject	HEDGE FUND
dc.subject	HEDGE FUNDS
dc.subject	HOLDING
dc.subject	HOST COUNTRY
dc.subject	INCOME FLOWS
dc.subject	INCOME SHOCKS
dc.subject	INDEBTED COUNTRIES
dc.subject	INFLATION
dc.subject	INSTRUMENT
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL DIVERSIFICATION
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL FINANCIAL INTEGRATION
dc.subject	INTERNATIONAL FINANCIAL MARKETS
dc.subject	INTERNATIONAL INVESTOR
dc.subject	INTERNATIONAL INVESTORS
dc.subject	INTERNATIONAL PORTFOLIO
dc.subject	INTERNATIONAL SECURITIES
dc.subject	INVESTING
dc.subject	INVESTMENT VEHICLES
dc.subject	ISSUANCE
dc.subject	LEVY
dc.subject	LIABILITY
dc.subject	LIQUID MARKETS
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CRUNCH
dc.subject	LIQUIDITY RISKS
dc.subject	LOCAL DEBT
dc.subject	LOCAL DEBT MARKETS
dc.subject	LOCAL EQUITY MARKETS
dc.subject	LOCAL MARKET
dc.subject	LOCAL MARKETS
dc.subject	LOCAL STOCK MARKET
dc.subject	LOW-INCOME COUNTRIES
dc.subject	MACROECONOMIC VOLATILITY
dc.subject	MARKET CONDITIONS
dc.subject	MARKET DEEPENING
dc.subject	MARKET DEPTH
dc.subject	MARKET DEVELOPMENT
dc.subject	MARKET DEVELOPMENTS
dc.subject	MARKET DISCOUNTS
dc.subject	MARKET INVESTMENT
dc.subject	MARKET SIZE
dc.subject	MARKET VALUE
dc.subject	MARKET VALUES
dc.subject	MIDDLE-INCOME ECONOMIES
dc.subject	MONETARY FUND
dc.subject	MUTUAL FUNDS
dc.subject	NET DEBT
dc.subject	OPEN ECONOMY
dc.subject	OUTPUT
dc.subject	PHYSICAL ASSETS
dc.subject	PORTFOLIO COMPOSITION
dc.subject	PORTFOLIO DIVERSIFICATION
dc.subject	PORTFOLIO FLOWS
dc.subject	PORTFOLIO HOLDINGS
dc.subject	PORTFOLIO INVESTOR
dc.subject	PORTFOLIO RISK
dc.subject	PORTFOLIOS
dc.subject	PRICE CHANGES
dc.subject	PRICE VOLATILITY
dc.subject	PRIVATE CREDIT
dc.subject	PROFESSIONAL INVESTORS
dc.subject	REDEMPTIONS
dc.subject	RESERVE
dc.subject	RETURN
dc.subject	RETURN DIFFERENTIALS
dc.subject	RETURNS
dc.subject	RISK AVERSION
dc.subject	RISK DIVERSIFICATION
dc.subject	RISK POOLING
dc.subject	RISK SHARING
dc.subject	SAVINGS
dc.subject	SAVINGS CAPACITY
dc.subject	SECURITIES MARKETS
dc.subject	SECURITIES PORTFOLIO
dc.subject	SETTLEMENT
dc.subject	SINGLE MARKET
dc.subject	SOLVENCY
dc.subject	SOVEREIGN DEBT
dc.subject	STOCK DATA
dc.subject	STOCK MARKET
dc.subject	STOCK MARKET CAPITALIZATION
dc.subject	STOCK MARKET DEVELOPMENT
dc.subject	STOCKS
dc.subject	SWAPS
dc.subject	TAX
dc.subject	TERMS OF CREDIT
dc.subject	TOTAL DEBT
dc.subject	TRADE LIBERALIZATION
dc.subject	TRADES
dc.subject	TRADING
dc.subject	TRANSACTION
dc.subject	TRANSACTION COSTS
dc.subject	TRANSPARENCY
dc.subject	TREASURY
dc.subject	TURNOVER
dc.subject	VALUATION
dc.subject	VALUATION CHANGES
dc.subject	VOLATILITIES
dc.title	Financial Globalization in Emerging Economies : Much Ado about Nothing?
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region