Broner, FernandoVentura, Jaume2023-11-202023-11-202016Broner F, Ventura J. Rethinking the effects of financial globalization. The Quarterly Journal of Economics. 2016 Aug;131(3):1497-542. DOI: 10.1093/qje/qjw0100033-5533http://hdl.handle.net/10230/58310During the past three decades, many countries have lifted restrictions on cross-border financial transactions. We present a simple model that can account for the observed effects of financial globalization. The model emphasizes the role of imperfect enforcement of domestic debts and the interactions between domestic and foreign debts. Financial globalization can lead to a variety of outcomes: (i) domestic capital flight and ambiguous effects on net capital flows, investment, and growth; (ii) capital inflows and higher investment and growth; or (iii) volatile capital flows and unstable domestic financial markets. The model shows how the effects of financial globalization depend on the level of development, productivity, domestic savings, and the quality of institutions.application/pdfeng© The Author(s) 2016. Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact journals.permissions@oup.comGlobalització -- Aspectes econòmicsGlobalització (Economia)Mercats financersinfo:eu-repo/semantics/articlehttp://dx.doi.org/10.1093/qje/qjw010info:eu-repo/semantics/openAccess