Working Paper: CEPR ID: DP7820
Authors: Giuseppe Bertola; Anna Lo Prete
Abstract: Economic integration may directly increase the need for private funding of consumption and investment, and should make it difficult for national governments to repress financial markets and to enforce redistribution policies that substitute private contractual arrangements. We analyze the trajectories since the 1980s of financial market development and policy choices and interpret them structurally as reactions, shaped by country-specific characteristics, to exogenous globalization pressures.
Keywords: Financial Development; Globalization
JEL Codes: F4; G18; H1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Economic integration (F15) | financial development (O16) |
| Economic integration (F15) | reduced government role in financial matters (G28) |
| Globalization (F60) | compromised effectiveness of government policies (F68) |