02118cas a2200277 a 4500 AALejournalIMF018394 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484350645 1018-5941 BD-DhAAL BD-DhAAL Carare, Alina. Globalization and the New Normal / Alina Carare, Bertrand Candelon, Jean-Baptiste Hasse, Jing Lu. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (40 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 This study expands the empirical specification of Cerra and Saxena (2008), and allows short-term output growth regimes to be determined by globalization. Relying on a non-linear dynamic panel representation, it reconciles the earlier results in the literature regarding the two opposite narratives of the effects of globalization on output growth. Countries experience higher growth, on average, the more open and integrated they are into the world. However, once they reach a certain globalization threshold (endogenously estimated), countries may also experience a new normal, persistently lower short-term output growth following a financial crisis. The benefits, as well as vulnerabilities, accrue earlier in the globalization process for low- and middle-income countries. To solely reap the globalization benefits on growth, sound policies should be in place to mitigate the negative effects stemming from increased vulnerabilities brought by globalization. Mode of access: Internet Candelon, Bertrand. Hasse, Jean-Baptiste. Lu, Jing. IMF Working Papers; Working Paper ; No. 2018/075 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/075/001.2018.issue-075-en.xml IMF e-Library