Financial Globalization in Emerging Countries: Diversification vs. Offshoring
37 Pages Posted: 20 Oct 2012
Date Written: October 19, 2012
Financial globalization has gathered attention since the early 1990s because of its macro-financial and crisis implications and its perceived large expansion. But financial globalization has taken different forms over time. This paper examines two important concurrent dimensions of financial globalization relevant for emerging countries: diversification and offshoring. We find that globalization via the diversification channel has expanded throughout during the 2000s as domestic residents invested more abroad and foreigners increased their domestic investments. However, financial globalization via offshoring has displayed more mixed patterns, with variations across markets and countries.
Keywords: financial globalization, emerging economies, diversification, offshoring
JEL Classification: F36, G15, G20
Suggested Citation: Suggested Citation