International Financial Remoteness and Macroeconomic Volatility / Andrew K. Rose, Mark M. Spiegel.

Format:

Book

Author/Creator:

Rose, Andrew K.

Contributor:

National Bureau of Economic Research.

Spiegel, Mark M.

Series:

Working Paper Series (National Bureau of Economic Research) no. w14336.

NBER working paper series no. w14336

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2008.

Summary:

This paper shows that proximity to major international financial centers seems to reduce business cycle volatility. In particular, we show that countries that are further from major locations of international financial activity systematically experience more volatile growth rates in both output and consumption, even after accounting for political institutions, trade, and other controls. Our results are relatively robust in the sense that more financially remote countries are more volatile, though the results are not always statistically significant. The comparative strength of this finding is in contrast to the more ambiguous evidence found in the literature.

Notes:

Print version record

September 2008.