Year: 2008
Type: report
Abstract: This paper shows that proximity to major international financial centers seems to reduce business cycle volatility.In particular, we show that countries that are further from major locations of international financial activity systematically experience more volatile growth rates in both output and consumption, even after accounting for political institutions, trade, and other controls.Our results are relatively robust in the sense that more financially remote countries are more volatile, though the results are not always statistically significant.The comparative strength of this finding is in contrast to the more ambiguous evidence found in the literature.
DOI: 10.3386/w14336
Authors: Andrew Rose, Mark Spiegel
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1978785511