From Worldwide Capital Mobility to International Financial Integration: A Review Essay

Open Economies Review

Volumn 9, Issue 1, 1998, Pages 53-84

  Von Furstenberg, George M ^a  

^a INDIANA UNIVERSITY   (United States)

Author keywords

Financial integration; Financial services; International capital mobility

Indexed keywords

CAPITAL FLOWS; FINANCIAL INTEGRATION; FINANCIAL SERVICES; WELFARE ECONOMICS;

EID: 0031857463     PISSN: 09237992     EISSN: None     Source Type: Journal    
DOI: 10.1023/a:1008227306994     Document Type: Article

References (122)

1. Akdogan, H. (1995) The Integration of International Capital Markets: Theory and Empirical Evidence. Brookfield, VT: Edward Elgar.
2. Ando, A. and A.J. Auerbach (1990) "The Cost of Capital in Japan: Recent Evidence and Further Results." NBER Working Paper No. 3371.
3. Ando, A., J. Hancock, and G. Sawchuk (1997) "Cost of Capital for the United States, Japan, and Canada: An Attempt at Measurement Based on Individual Company Records and Aggregate National Accounts Data." NBER Working Paper No. 5884.
4. Armstrong, H.W., V.N. Balasubramanyam, and M.A. Salisu (1996) "Domestic Savings, Intra-National and Intra-European Union Capital Flows, 1971-1991," European Economic Review 40, 1229-1235.
5. Bakker, A.F.P. (1994) The Liberalization of Capital Movements in Europe: The Monetary Committee and Financial Integration, 1958-1994. Boston: Kluwer Academic Publishers.
6. Bank for International Settlements, BIS (1997) 67th Annual Report. Basle: BIS.
7. Barro, R.J., N.G. Mankiw, and X. Sala-i-Martin (1992) "Capital Mobility in Neoclassical Models of Growth." NBER Working Paper No. 4206.
8. Bartolini, L. and G.M. Bodnar (1996) "Are Exchange Rates Excessively Volatile? And What Does 'Excessively Volatile' Mean Anyway?" International Monetary Fund Staff Papers 43, 72-96.
9. Bartolini, L. and A. Drazen (1997) "Capital-Account Liberalization as a Signal," American Economic Review 87, 138-154.
10. Baxter, M. (1994) "Real Exchange Rates and Real Interest Differentials," Journal of Monetary Economics 33, 5-37.
11. Baxter, M. and M.J. Crucini (1993) "Explaining Saving-Investment Correlations," American Economic Review 83, 416-436.
12. Baxter, M. and U.J. Jermann (1997) "The International Diversification Puzzle is Worse Than You Think," American Economic Review 87, 170-180.
13. Bayoumi, T. and M.W. Klein (1995) "A Provincial View of Capital Mobility." NBER Working Paper No. 5115.
14. Bayoumi, T. and R. Mac Donald (1995) "Consumption, Income, and International Market Integration," International Monetary Fund Staff Papers 42, 552-576.
15. Bencivenga, V.R. and B.D. Smith (1992) "Deficits, Inflation, and the Banking System in Developing Countries: The Optimal Degree of Financial Repression," Oxford Economic Papers 44, 767-790.
16. Blinder, A.S. (1997) "Distinguished Lecture on Economics in Government: What Central Bankers Could Learn from Academics and Vice Versa," Journal of Economic Perspectives 11(2), 3-19.
17. Blommestein, H.J. and M.G. Spencer (1997) "Sound Finance and the Wealth of Nations." In G.M. von Furstenberg (ed.) Regulation and Supervision of Financial Institutions in the NAFTA Countries and Beyond. Boston: Kluwer Academic Publishers.
18. Bordo, M.D. (1993) "The Gold Standard, Bretton Woods and Other Monetary Regimes: A Historical Appraisal," Federal Reserve Bank of St. Louis Review 75(2), 123-191.
19. Branson, William H. (1993) "Discussion." In A. Giovannini (ed.) Finance and Development: Issues and Experience. Cambridge: Cambridge University Press.
20. Budnevich, C. and O.M. Landerretche (1997) "Macroeconomic and Financial Policy in Chile." In G.M. von Furstenberg (ed.) The Banking and Financial Structure in the NAFTA Countries and Chile. Boston: Kluwer Academic Publishers.
21. Buiter, W.H. and K.M. Kletzer (1992) "Permanent International Productivity Growth Differentials in an Integrated Global Economy." NBER Working Paper No. 4220.
22. Chari, V.V. and P. Kehoe (1997) "Hot Money." NBER Working Paper No. 6007.
23. Cline, W.R. (1995) International Debt Reexamined. Washington, D.C.: Institute for International Economics.
24. Cohen, B.J. (1996) "Phoenix Risen: The Resurrection of Global Finance," World Politics 48, 286-296.
25. Cole, H.L. (1993) "The Macroeconomic Effects of World Trade in Financial Assets," Federal Reserve Bank of Minneapolis Quarterly Review (Summer), 12-21.
26. Deaton, A. (1992) Understanding Consumption. Oxford: Clarendon Press.
27. Devlin, R., R. Ffrench-Davis, and S. Griffith-Jones (eds.) (1995) Coping With Capital Surges: The Return of Finance to Latin America. Boulder and London: Lynne Rienner.
28. Dooley, M.P (1996) "A Survey of Literature on Controls over International Capital Transactions," International Monetary Fund Staff Papers 43(4), 639-687.
29. Dooley, M.P. and M. Chinn (1995) "Financial Repression and Capital Mobility: Why Capital Flows and Covered Interest Rate Differentials Fail to Measure Capital Market Integration." NBER Working Paper No. 5347.
30. Dooley, M.P., J.A. Frankel, and D. Mathieson (1987) "International Capital Mobility: What Do Saving-Investment Correlations Tell Us?" International Monetary Fund Staff Papers 34, 503-530.
31. Dornbusch, R. and Giovannini, A. (1990) "Monetary Policy in an Open Economy." In B.M. Friedman and F.H. Hahn (eds.) Handbook of Monetary Economics, vol. 2. Amsterdam, NL: North-Holland.
32. Dornbusch, R. and Y.C. Park (1987) "Korean Growth Policy," Brookings Papers on Economic Activity (2), 389-444.
33. Dornbusch, R. and A. Reynoso (1989) "Financial Factors in Economic Development," American Economic Review Papers and Proceedings 79(2), 204-209.
34. Edwards, S. (1997) "Openness, Productivity, and Growth: What Do We Really Know?" NBER Working Paper No. 5978.
35. Eichengreen, Barry (1996) Globalizing Capital: A History of the International Monetary System. Princeton, N.J.: Princeton University Press.
36. Engel, C. (1996) "The Forward Discount Anomaly and the Risk Premium: A Survey of Recent Evidence," Journal of Empirical Finance 3, 123-192.
37. Feldstein, M.S. (1994) "Tax Policy and International Capital Flows," Weltwirtschaftliches Archiv 130, 675-697.
38. Feldstein, M.S. and C. Horioka (1980) "Domestic Saving and International Capital Flows," Economic Journal 90, 314-329.
39. Ffrench-Davis, R., D. Titelman, and A. Uthoff (1994) "International Competitiveness and the Macroeconomics of Capital Account Opening," UNCTAD Review, 107-121.
40. Fischer, B. (1995) "Foreign Portfolio Equity Investment in Emerging Markets: A Panacea for Economic Development?" Savings and Development 19, 149-173.
41. Fischer, B. and H. Reisen (1993) Liberalising Capital Flows in Developing Countries: Pitfalls Prerequisites and Perspectives. Paris: OECD, Development Centre Study.
42. Fluck, Z., B.G. Malkiel, and R.E. Quandt (1997) "The Predictability of Stock Returns: A Cross-Sectional Simulation," Review of Economics and Statistics 79, 176-183.
43. Fox, M. (1992) "Aspects of Barriers to International Integrated Securities Markets," Journal of International Securities Markets 209-218.
44. Frankel, J.A. (1991) "Quantifying International Capital Mobility in the 1980s." In B.D. Bernheim and J.B. Shoven (eds.), National Saving and Economic Performance. Chicago: University of Chicago Press.
45. Frankel, J.A. and C. Okongwu (1995) "Liberalized Portfolio Capital Inflows in Emerging Markets: Sterilization, Expectations, and the Incompleteness of Interest Rate Convergence." NBER Working Paper No. 5156.
46. Fratianni, M. (1997) "Competition and Convergence of Bank Regulation in NAFTA." In G.M. von Furstenberg (ed.) Regulation and Supervision of Financial Institutions in the NAFTA Countries and Beyond. Boston: Kluwer Academic Publishers.
47. Frenkel, J.A., A. Razin, and E. Sadka (1991) International Taxation in an Integrated World. Cambridge, MA: MIT Press.
48. Friend, I. and I. Tokutsu (1987) "The Cost of Capital to Corporations in Japan and the U.S.A.," Journal of Banking and Finance 11, 313-327.
49. Froot, K.A. and K. Rogoff (1995) "Perspectives on PPP and Long-Run Real Exchange Rates." In G. Grossman and K. Rogoff (eds.) Handbook of International Economics 3. Amsterdam: North-Holland.
50. Fry, M.J. (1991) "Domestic Resource Mobilization in Developing Asia: Four Policy Issues," Asian Development Review 9, 15-39.
51. Fry, M.J. (1995) Money, Interest, and Banking in Economic Development. 2nd edition. Baltimore, MD: Johns Hopkins University Press.
52. Gerardi, D. (1995) "Imperfections in Insurance Markets and International Differentials in Saving Rates," Quaderni di Ricerca 1995-2. Milan: Instituto di Economia Politica, Università Commerciale Luigi Bocconi.
53. Ghosh, A.R. (1995) "International Capital Mobility Amongst the Major Industrialised Countries: Too Little or Too Much?" Economic Journal 105, 107-128.
54. Goldberg, L., J.R. Lothian, and J. Okunev (1997) "Has International Financial Integration Increased?" University of Miami Department of Finance.
55. Gollier, C. (1997) "About the Insurability of Catastrophic Risks," The Geneva Papers on Risk and Insurance 83, 177-186.
56. Goodman, J.B. and L.W. Pauly (1993) "The Obsolescence of Capital Controls? Economic Management in an Age of Global Markets," World Politics 46, 50-82.
57. Gordon, R.H. and A.L. Bovenberg (1994) "Why is Capital so Immobile Internationally? Possible Explanations and Implications for Capital Income Taxation." NBER Working Paper No. 4796.
58. Haque, N.U., M.S. Kumar, N. Mark, and D.J. Mathieson (1996) "The Economic Content of Indicators of Developing Country Creditworthiness," International Monetary Fund Staff Papers 43, 688-724.
59. Hausmann, R. and L. Rojas-Suárez (eds.) (1996) Banking Crises in Latin America. Washington, D.C.: Inter-American Development Bank.
60. Hatsopoulos, G.N., P.R. Krugman, and L.H. Summers (1988) "U.S. Competitiveness: Beyond the Trade Deficit," Science 241, 299-307.
61. International Monetary Fund (IMF) (1996) World Economic Outlook. Washington, D.C.: IMF.
62. Kaminsky, G.L. and C.M. Reinhart (1996) "The Twin Crises: The Causes of Banking and Balance of Payments Problems." International Finance Discussion Paper No. 544. Washington, D.C.: Board of Governors of the Federal Reserve System.
63. Kenen, P.B. (1976) "Capital Mobility and Financial Integration: A Survey." Princeton Studies in International Finance No. 39.
64. Khan, M.S. and D.J. Mathieson (1996) "The Implication of International Capital Flows for Macroeconomic and Financial Policies," International Journal of Finance and Economics 1, 155-160.
65. Krol, R. (1996) "International Capital Mobility: Evidence from Panel Data," Journal of International Money and Finance 15, 467-474.
66. Krugman, P. (1993) "International Finance and Economic Development." In A. Giovannini (ed.) Finance and Development: Issues and Experience. Cambridge: Cambridge University Press.
67. Leibfritz, W.J. Thornton and A. Bibbee (1997) "Taxation and Economic Performance." Economics Department Working Paper No. 176, Paris OECD, OCDE/GD(97)107.
68. Lemmen, J. (1996) Financial Integration in the European Union: Measurement and Determination. Tilburg: Center for Economic Research, Tilburg University.
69. Levine, R. (1997) "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature 35(2), 688-726.
70. Lewis, K.K. (1994) "Puzzles in International Financial Markets." NBER Working Paper No. 4951.
71. Lewis, K.K. (1996) "Consumption, Stock Returns, and the Gains from International Risk-sharing." NBER Working Paper No. 5410.
72. Lindgren, C.-J., G. Garcia, and M.I. Saal (1996) Bank Soundness and Macroeconomic Policy. Washington, D.C.: IMF.
73. Lothian, J.R. (1996) "Capital Market Integration and Exchange-Rate Regimes in Historical Perspective." Fordham University Graduate School of Business.
74. Lusser, M. (1995) "Die Schweizerische Wirtschaft im weltweiten strukturellen Anpassungs-prozess: Die Rolle der Geldpolitik." Hochschule St. Gallen seminar paper.
75. Lynch, D. (1995) "Does Financial Sector Development Matter to Investment?" Savings and Development 19(1), 29-60.
76. Mark, N.C. and Y. Wu (1996) "Risk, Policy Rules, and Noise: Rethinking Deviations from Uncovered Interest Parity." Ohio State University Department of Economics.
77. Marston, R.C. (1994) "Tests of Three Parity Conditions: Distinguishing Risk Premia and Systematic Forecast Errors." NBER Working Paper No. 4923.
78. Mathieson, D.J. and L. Rojas-Suárez (1993) "Liberalization of the Capital Account: Experiences and Issues." Occasional Paper No. 103. Washington, D.C.: IMF.
79. Mauro, P. (1997) "Why Worry About Corruption?" International Monetary Fund Economic Issues, Paper No. 6.
80. McCallum, B.T. (1994) "A Reconsideration of the Uncovered Interest Parity Relation," Journal of Monetary Economics 33, 105-132.
81. McKinnon, R.I. and H. Pill (1997) "Credible Economic Liberalizations and the Overborrowing Syndrome," American Economic Review 87(2), 189-193.
82. Meese, R. and K. Rogoff (1988) "Was It Real? The Exchange Rate-Interest Differential Relation Over the Modern Floating-Rate Period," Journal of Finance 43, 933-948.
83. Mendoza, E.G. (1992) "The Effect of Macroeconomic Shocks in a Basic Equilibrium Framework," International Monetary Fund Staff Papers 39, 855-889.
84. Mendoza, E.G. (1994) "The Robustness of Macroeconomic Indicators of Capital Mobility." In L. Leiderman and A. Razin (eds.) Capital Mobility: The Impact on Consumption, Investment and Growth. Cambridge: Cambridge University Press.
85. Merton, R.C. (1990) "The Financial System and Economic Performance." Harvard Business School Division of Research Working Paper No. 90-072.
86. Mintz, Jack M. (1992) "Is There a Future for Capital Income Taxation?" OECD Economics Department Working Paper No. 108. Paris: OECD/GD (92)54.
87. Mundell, R.A. (1957) "International Trade and Factor Mobility," American Economic Review 47, 321-335.
88. Nachbar, J.H. (1990) "The Cost of Capital in the United States and Japan: A Survey of Some Recent Literature." A Rand Note. Santa Monica, CA: The Rand Corporation.
89. Norton, J.J., C.-J. Cheng, and I. Fletcher (1994) International Banking Regulation and Supervision: Change and Transformation in the 1990s. London: Graham & Trotman.
90. OECD (1995a) Securitisation: An International Perspective. Paris: OECD.
91. OECD (1995b) The New Financial Landscape: Forces Shaping the Revolution in Banking, Risk Management and Capital Markets. Paris: OECD.
92. OECD (1996) OECD Economies at a Glance: Structural Indicators. Paris: OECD.
93. O'Brien, R. (1992) Global Financial Integration: The End of Geography. New York: Council on Foreign Relations Press.
94. Obstfeld M. (1994) "Risk-Taking, Global Diversification, and Growth," American Economic Review 84, 1310-1329.
95. Obstfeld, M. (1995) "International Capital Mobility in the 1990s." In P.B. Kenen (ed.) Understanding Interdependence: The Macroeconomics of the Open Economy. Princeton, N.J.: Princeton University Press.
96. Obstfeld, M. and K. Rogoff (1995) "The Intertemporal Approach to the Current Account." In G. Grossman and K. Rogoff (eds.) Handbook of International Economics 3. Amsterdam: North-Holland.
97. Obstfeld, M. and Alan M. Taylor (1997) "The Great Depression as a Watershed: International Capital Mobility in the Long Run." NBER Working Paper No. 5960.
98. Poterba, J.M. (1991) "Comparing the Cost of Capital in the United States and Japan: A Survey of Methods," Federal Reserve Bank of New York Quarterly Review (Winter), 20-32.
99. Price Waterhouse (1987) Cost of "non Europe" in Financial Services: Final Report.
100. Quah, D.T. (1996) "Convergence Empirics Across Economies with (Some) Capital Mobility," Journal of Economic Growth 1, 95-124.
101. Reichel, R. (1995) "Development Aid, Savings and Growth in the 1980s: A Cross-Section Analysis," Savings and Development 19(3), 279-296.
102. Roubini, N. and X. Sala-i-Martin (1992) "Financial Repression and Economic Growth," Journal of Development Economics 39, 5-30.
103. Sachs, J.D. and A.M. Warner (1995) "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity (1), 1-118.
104. Sachs, J.D. and A.M. Warner (1997) "Fundamental Sources of Long-Run Growth," American Economic Review 87(2), 184-188.
105. Selgin, G. (1996) "Real versus Pseudo Free Trade in Banking: A Critique of NAFTA's Financial Service Provisions." In J.A. Dorn and R. Salinas-León (eds.) Money and Markets in the Americas: New Challenges for Hemispheric Integration. Vancouver: The Fraser Institute.
106. Shepherd, William F. (1994) International Financial Integration. Aldershot, UK: Avebury.
107. Sørensen, B.E and O. Yosha (1997) "International Risk Sharing and European Monetary Unification," Brown University and Tel Aviv University.
108. Spitäller, E. (1971) "A Survey of Recent Quantitative Studies of Long-Term Capital Movements," International Monetary Fund Staff Papers 18, 189-217.
109. Stockman, A.C. (1994) "Sources of Real Exchange-Rate Fluctuations: Comment," Carnegie-Rochester Conference Series on Public Policy 41, 57-65
110. Summers, L.H. (1997) "Promoting Global Financial Stability: The G-7 Agenda." Paper delivered at the Institute for International Economics, Washington, D.C.
111. Sussman, O. and J. Zeira (1995) "Banking and Development." CEPR Discussion Paper No. 1127. London: Centre for Economic Policy Research.
112. Taylor, A.M. (1996) "International Capital Mobility in History: The Savings-Investment Relationship." NBER Working Paper No. 5743.
113. Tesar, L.L. (1991) "Savings, Investment, and International Capital Flows," Journal of International Economics 31, 55-78.
114. Tesar, L.L. (1995) "Evaluating the Gains from International Risk Sharing," Carnegie-Rochester Conference Series on Public Policy 42, 95-143.
115. Thakor, A.V. (1996) "Financial Conglomeration: Issues and Questions," North American Journal of Economics and Finance 7, 135-145.
116. Tobin J. (1996) "A Currency Transactions Tax: Why and How?" Open Economies Review 7 (Supplement 1), 493-499.
117. Townsend, Robert M. (1995) "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives 9(3), 83-102
118. UNDP (United Nations Development Program) (1994) Human Development Report 1994. New York: Oxford University Press.
119. United Nations, Transnational Corporations and Management Division (1993) International Tradability in Insurance Services: Implications for Foreign Direct Investment in Insurance Services. New York: United Nations.
120. von Furstenberg, G.M. and B.N. Jeon (1989) "International Stock Price Movements: Links and Messages," Brookings Papers on Economic Activity 1, 125-179.
121. White, W.R. (1997) "International Agreements in the Area of Banking and Finance: Accomplishments and Outstanding Issues." In G.M. von Furstenberg (ed.), Regulation and Supervision of Financial Institutions in the NAFTA Countries and Beyond. Boston: Kluwer Academic Publishers.
122. Zimmer, S.A. and R.N. McCauley (1991) "Bank Cost of Capital and International Competition," Federal Reserve Bank of New York Quarterly Review (Winter), 33-59.