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Focusing on technology spillover from foreign direct investment (FDI) inflows, this paper investigates the welfare implications of financial integration. Calibrations of a neoclassical growth model with international technology diffusion show that when technology catch-up due to FDI inflows is...
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). We construct a globalization measure that equals the share of explained variation in direct investment attributable to … global factors. We show that our globalization measure has increased steadily for developing and developed countries. For the … full sample of countries, the globalization measure rose by over ten-fold from 1985 to 1999. Furthermore, in recent years …
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The goal of this paper is to explain the de facto financial market integration to global markets with foreign equity ownership using a unique data set of foreign portfolio flows at the individual stock level. The main result is the positive link between global financial integration and past...
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