Is Financial Globalization Beneficial?
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This lecture examines whether financial globalization is beneficial to developing countries by first
examining the evidence on financial development and economic growth and concludes that financial
development is indeed a key element in promoting economic growth. It then asks why if financial
development is so beneficial, it often doesn't occur. It then goes on to examine whether globalization,
particularly of the financial kind, can help encourage financial and economic development and
argues that it can. However, financial globalization does not always work to encourage economic
development because it often leads to devastating financial crises. The issue is thus not whether
financial globalization is inherently good or bad, but whether it can be done right.
Source: Working Paper 11891
Mishkin, Frederic. "Is Financial Globalization Beneficial?" Working Paper 11891, NBER, 2006.