The authors address two questions: What happens to stock market size, liquidity, volatility, and integration with world …

effects of the composition of capital inflows on output volatility. The paper develops a simple empirical model which, under … certain conditions that hold in the data, yields three key testable implications. First, output volatility should depend … positively on the volatilities of both foreign direct investment and portfolio and other inflows. Second, output volatility …

measures, the financial globalization index corrects for the heteroscedasticity of global volatility. This leads to a downward … globalization reduces market volatility (measured by the volatility of stock returns) in tranquil times, and increases it in … turbulent ones. On average, the first effect dominates, so that financial globalization leads to a decrease in market volatility …

conventional wisdom still holds in the contemporary world. The results show that, despite recent structural and regulatory changes … volatile. There is similarly an increase in the volatility of bank-intermediated capital outflows from emerging markets. The …

transactions take place. The authors find that globalization via the diversification channel expanded throughout the world during …

likely to stop bringing their capital when their economy is growing and the world interest rate is lower. Domestic agents are …

and South since the 2000s. The paper shows that the region is increasingly more connected with the rest of the world, even …

-specific characteristics and policies. Sudden stops now tend to affect different parts of the world simultaneously rather than bunching … challenge of understanding and coping with capital-flow volatility is far from fully met …

emerging and developing economies issuance. A decrease in U.S. expected equity market (or interest rate) volatility, U …