01907cas a2200253 a 4500 AALejournalIMF003410 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860863 1018-5941 BD-DhAAL BD-DhAAL Epaulard, Anne. Financial Integration, Growth, and Volatility / Anne Epaulard, Aude Pommeret. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The aim of this paper is to evaluate the welfare gains from financial integration for developing and emerging market economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and (iii) receive foreign direct investment (FDI). The model is calibrated on 32 emerging market and developing economies for which we evaluate the upper bound for the welfare gain from financial integration. For plausible values of preference parameters and actual levels of financial integration, the mean welfare gain from financial integration is about 10 percent of initial wealth. Compared with financial autarky, actual levels of financial integration translate into slightly higher annual growth rates (around 0.4 percentage point per year.). Mode of access: Internet Pommeret, Aude. IMF Working Papers; Working Paper ; No. 2005/067 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/067/001.2005.issue-067-en.xml IMF e-Library