I analyze output growth, volatility, and skewness as the joint outcomes of financial openness. Using an industry panel of 53 countries over 45 years, I find that financial openness increases simultaneously mean growth and the negative skewness of the growth process. The increase in output...

This paper reviews and appraises the body of empirical research on the association between .nancial markets and economic growth that has accumulated over the past quarter-century. The bulk of the historical evidence suggests that financial development a¤ects economic growth in a positive,...