Financial Integration and International Consumption Risk Sharing PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Financial Integration and International Consumption Risk Sharing PDF full book. Access full book title Financial Integration and International Consumption Risk Sharing by Narada Luckanachai. Download full books in PDF and EPUB format.
Author: Narada Luckanachai
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
Get Book Here
Book Description
Author: Narada Luckanachai
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
Get Book Here
Book Description
Author: Soyoung Kim
Publisher: 대외경제정책연구원
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 54
Get Book Here
Book Description
Author: Aidan Corcoran
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
Get Book Here
Book Description
This paper finds economically significant levels of consumption risk sharing by industrialized and emerging/developing countries over the period 1987-2003/4. Failure to account for the distinct effects of different types of financial integration (particularly the possible procyclicality of debt liabilities) and for the role of the real exchange rate in determining the extent of risk sharing may partly explain the lack of evidence for risk sharing by emerging and developing countries in previous studies. The need to allow for different responses of consumption to aggregate and domestic shocks, which could occur if the two types of shocks display different degrees of persistence, receives empirical support, but does not materially affect the measure of risk sharing. Likewise, the use of different deflators proposed in the literature does not affect the findings, except in the case of debt market integration by Non-OECD countries.
Author: M. Ayhan Kose
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 48
Get Book Here
Book Description
In theory, one of the main benefits of financial globalization is that it should allow for more efficient international risk sharing. This paper provides a comprehensive empirical evaluation of the patterns of risk sharing among different groups of countries and examines how international financial integration has affected the evolution of these patterns. Using a variety of empirical techniques, we conclude that there is at best a modest degree of international risk sharing, and certainly nowhere near the levels predicted by theory. In addition, only industrial countries have attained better risk sharing outcomes during the recent period of globalization. Developing countries have, by and large, been shut out of this benefit. The most interesting result is that even emerging market economies, which have experienced large increases in cross-border capital flows, have seen little change in their ability to share risk. We find that the composition of flows may help explain why emerging markets have not been able to realize this presumed benefit of financial globalization. In particular, our results suggest that portfolio debt, which has dominated the external liability stocks of most emerging markets until recently, is not conducive to risk sharing.
Author: Malin Gardberg
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Complete financial markets allow countries to share their consumption risks internationally, thereby creating welfare gains through lower volatility of aggregate consumption. This paper empirically looks at international consumption risk sharing and its determinants in a panel of 120 countries from 1970 to 2014. Contrary to some previous studies, I show that financial liberalization and financial integration has a significantly positive impact on international consumption risk sharing in poorer developing countries, whereas in emerging market countries only capital account openness has an impact. Moreover, there is some evidence that high income inequality or a high share of low income individuals reduces consumption smoothing in less developed countries. Lack of financial reforms, a lower degree of financial integration and higher inequality can thus partly explain why the degree of risk sharing is lower in developing countries than in advanced economies.
Author: Mr.Zhaogang Qiao
Publisher: International Monetary Fund
ISBN: 1451982089
Category : Business & Economics
Languages : en
Pages : 48
Get Book Here
Book Description
This paper estimates an empirical nonstationary panel regression model that tests long-run consumption risk sharing across a sample of OECD and emerging market (EM) countries. This is in contrast to the existing literature on consumption risk sharing, which is mainly about risks at business cycle frequency. Since our methodology focuses on identifying cointegrating relationships while allowing for arbitrary short-run dynamics, we can obtain a consistent estimate of long-run risk sharing while disregarding any short-run nuisance factors. Our results show that long-run risk sharing in OECD countries increased more than that in EM countries during the past two decades.
Author: Falko Fecht
Publisher:
ISBN: 9783865584663
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Author: Hans-Peter Burghof
Publisher:
ISBN:
Category :
Languages : en
Pages : 21
Get Book Here
Book Description
In order to answer the question whether more integrated financial markets are characterized by less International Risk Sharing we focus on the long-term evolutions of the intensively discussed anomalies of the Equity Home Bias, used as indicated for financial integration, and the International Risk Sharing in consumption. Using panel-data regressions for 21 OECD countries from 1980 to 2010, we show that a less than average amount of Equity Home Bias, e.g. higher than average amount of international income flows, is associated with more International Risk Sharing. Much of the increase in international asset positions came during the recent globalization period. More generally, by measuring financial integration by the index of the Equity Home Bias, our results indicate that more financial integration goes hand-in-hand with more internationally shared risk. Our results are robust across countries and time.
Author: Mr.Ayhan Kose
Publisher: International Monetary Fund
ISBN: 1451846991
Category : Business & Economics
Languages : en
Pages : 29
Get Book Here
Book Description
This paper examines the impact of international financial integration on macroeconomic volatility in a large group of industrial and developing economies over the period 1960-99. We report two major results: First, while the volatility of output growth has, on average, declined in the 1990s relative to the three preceding decades, we also document that, on average, the volatility of consumption growth relative to that of income growth has increased for more financially integrated developing economies in the 1990s. Second, increasing financial openness is associated with rising relative volatility of consumption, but only up to a certain threshold. The benefits of financial integration in terms of improved risk-sharing and consumption-smoothing possibilities appear to accrue only beyond this threshold.
Author: Michael Devereux
Publisher: Taylor & Francis
ISBN: 1136847626
Category : Business & Economics
Languages : en
Pages : 342
Get Book Here
Book Description
The ongoing global financial crisis has manifested a remarkable degree of global financial integration—and its implications—for emerging Asian financial markets. The current crisis will not and should not deter the progress that the region has made toward financial openness and integration. However, events like this clearly demonstrate that financial liberalization and integration is not without risks. Hence, emerging Asian economies' growing financial ties have motivated us to look closer at the repercussions of increased financial integration and evaluate the benefits of risk sharing and better access to international capital markets against the costs of cross-border financial contagion. The crisis also presents a timely opportunity for the region’s policy makers to rethink their strategies for financial deregulation and liberalization and to reconsider a next step to integrate emerging East Asia’s financial markets further. However, doing so requires deeper understanding of financial market integration. While much has been said in both academic and policy circles about financial globalization and regional financial integration as separate areas of study, existing research has been relatively silent on the dynamics between these two distinctive forces. The book addresses this gap in financial literature and assesses financial integration in emerging East Asia at both regional and global levels. The publication studies the factors driving the progress of regional financial integration in relation to financial globalization and identifies the relevant policy challenges facing emerging market economies in the region. Chapters look into three broad aspects of regional and global financial market integration: (i) measurement of regional and global financial integration, (ii) understanding dynamics of regional financial integration versus global financial integration, and (iii) welfare implications from regional financial market integration amid financial globalization. Against this context, academics, policy makers, and other readers will appreciate the rigorous research contribution provided by the book.
