<< N°161
| N°161 | ||
| Issue Q1 2020 | ||
| The post-crises output growth effects in a globalized economy | ||
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Bertrand Candelon Alina Carare Jean-Baptiste Hasse Jing Lu |
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| This paper investigates the persistent impact of financial crises on economic growth in different regimes of globalization. Relying on a nonlinear dynamic panel representation, this paper explains why the effects of globalization on growth weave into a tale of two opposite narratives. On average, a country experiences higher growth, the more open and integrated it is into the world. However, countries can also experience persistently lower medium-term output growth after a financial crisis, once globalization reaches a certain threshold. The benefits, as well as vulnerabilities, accrue earlier in the globalization process for low-income countries. |
Abstract |
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| Globalization ; Financial crises ; Output growth ; | Keywords | |
| f30 ; f43 ; f65 ; | JEL classification | |
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