Measuring Globalization of International Trade: Theory and Evidence

Arribas, Iván; Pérez, Francisco Torres; Tortosa‐Ausina, Emili

doi:10.1016/j.worlddev.2008.03.009

Cited by 76 publications

(75 citation statements)

References 39 publications

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“…5 When geographic barriers disappear, the effect of relative distance slowdowns and the shares of different countries in the financial assets/liabilities of a country ought to be closer to the GDP's shares. In an extreme scenario of eradication of every possibility of remoteness, only the economic dimension of partners will matter (Arribas et al, 2009b). These ideas are similar to those by the equity home bias literature, according to which the proportion of foreign assets held by domestic investors is too small in relation to the predictions of standard portfolio theory.…”

Section: International Banking Integration Indicatorsmentioning

confidence: 55%

“…Gropp and Kashyap (2009) have themselves proposed a recent metric for bank integration based on Stigler (1963), who considers that integration presumes new entry and that takeovers will lead to a convergence in profitability. Although both Köhler's (2009a;2009b) and Gropp and Kashyap's (2009) have some advantages over traditional measures of bank integration, we consider there is still remarkable progress to be made using quantity-based indicators based on crossborder bank retail flows' information. Accordingly, our methods are more in line with those conceding cross-border flows as evidence of bank integration.…”

Section: Introductionmentioning

confidence: 99%

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The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality

2008

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Section: International Banking Integration Indicatorsmentioning

confidence: 55%

Section: Introductionmentioning

confidence: 99%

The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality

2008

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“…Being far from this scenario would be equivalent to the equity home bias effect (Lewis, 1999), where individuals hold too little of their wealth in foreign assets. These ideas underlie the indicators proposed by Arribas et al (2009Arribas et al ( , 2011a, on which the subsections that follow are built on.…”

Section: A New Metric On Banking Integration: Openness Vs Connectednessmentioning

confidence: 99%

Is full banking integration desirable?

Arribas

Peiró‐Palomino

Tortosa‐Ausina

2020

Journal of Banking & Finance

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We analyze the links between banking integration and economic development for a sample of OECD countries. We measure banking integration considering indicators that merge not only openness but also connectedness with other banking systems. We plug these indicators into income regressions, also controlling for other relevant variables considered by the literature. In contrast to previous initiatives, this second stage explicitly takes into account the differing levels of economic development of the countries in our sample, since the benefits of enhanced banking integration might not be generalizable. To this end, we implement quantile regression, also considering the presence of endogenous regressors. Results show that bank connectedness is more important for economic development than bank openness, but the combined effect (i.e., banking integration) overall is positive and significant. The quantile regression models used in the second stage show that the effects are stronger for the poorest economies.

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“…The process of globalization, however, is a broad and multidimensional phenomenon with economic, social and political components (Arribas et al, 2009;Dreher et al, 2008) that may affect institutions differently, suggesting that a strict focus on economic measures might limit our understanding of the relationship between globalization and institutional change.…”

Section: (B) Previous Literaturementioning

confidence: 99%

More Open Better Governed? Evidence from High- and Low-Income Countries

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Summary -Using World Bank data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyze the relationship between economic and social globalization and six measures of institutional quality. Theoretically, the incentives of elites to respond to globalization by improving institutions should differ between low-income and high-income countries. Empirically, increasing economic flows and social globalization are followed by improving institutions in rich countries, while the effect is the opposite for low-income countries. Previous findings of positive effects of trade on institutional quality are likely driven by rich countries. Terms of use: Documents in EconStor may

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Measuring Globalization of International Trade: Theory and Evidence

Cited by 76 publications

References 39 publications

The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality

The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality

Is full banking integration desirable?

More Open Better Governed? Evidence from High- and Low-Income Countries

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