The two-sided effect of financial globalization on output volatility

@inproceedings{Meller2011TheTE,
  title={The two-sided effect of financial globalization on output volatility},
  author={Barbara Meller},
  year={2011}
}
This paper provides evidence for a significant relation between international financial markets’ integration and output volatility. In the framework of a threshold model, it is shown empirically that this relation depends on country’s financial risk. Financial risk indicates a country’s ability to pay its official, commercial and trade debts. In countries with low financial risk, financial openness decreases output volatility, while, in countries with high financial risk, financial openness… CONTINUE READING