The goal of this paper is to study the effects of globalization on the workings of asset markets and welfare. To do … this, we adopt a technological view of the globalization process. That is, we model this process as consisting of a gradual … (and exogenous) reduction in the costs of shipping goods across different regions of the world. In the absence of market …

We provide a comprehensive analysis of the impact of economic and financial globalization on asset return comovements … over the past 35 years. Our globalization indicators draw a distinction between de jure openness that results from changes … different asset classes. Although globalization has trended positively for most of our sample, the global financial crisis and …

). 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 …

-run effects of these variables. Estimation results show evidence of cointegration among financial globalization, investment, and … growth in the long run. Group means fully modified ordinary least squares results show that financial globalization is … reveal a unilateral Granger causality from financial globalization to private investment. An inverted U-shape relationship …