Document Type

Contribution to Book

Publication Date

2006

Source Publication

Working Papers from University of Milano-Bicocca, Department of Economics

Abstract

We study whether financial openness facilitates the economic integration of formerly centrally planned economies with the EU-15. Two dimensions of economic integration are considered: cross-country convergence of per-capita incomes and bilateral trade in goods and services. We find that more financially open economies effectively catch-up faster and trade more with the EU-15. These integration-enhancing effects occur over and above any effect stemming from domestic financial deepening and other factors determining growth and trade.

Comments

"The Impact of Financial Openness on Economic Integration: Evidence from Europe and the CIS" in Growth Resumption in the CIS, No. 88 (2005). Eds. Lúcio Vinhas de Souza and Oleh Havrylyshyn. Berlin : Springer, 2006. Permalink. © 2005 Elsevier. Used with Permission.