We gauge the de-facto capital account openness of the Chinese and Indian economies by testing the law of one price on the basis of onshore and offshore price gaps for three key financial instruments. Generally, the three measures show both economies becoming more financially open over time. Over...

Conventional wisdom suggests that countries that are financially integrated should be better insured against macroeconomic risk. In this paper, I study whether international risk sharing has improved with greater financial integration during the period 1973-2003. Using panel data regressions, I...