process of financial globalization. Our central findings indicate that policies promoting financial sector development …, institutional quality and trade openness appear to help developing countries derive the benefits of globalization. Similarly, sound … unavoidable tensions inherent in evaluating the risks and benefits associated with financial globalization. In light of these …

globalization. First, while capital account openness holds promises (by potentially generating a lower cost of capital, better risk … globalization less beneficial for developing countries. Second, developing countries sometimes need to insulate themselves from … foreign monetary policy shocks. The empirical pattern appears to be somewhere between a trilemma and a dilemma. While nominal …