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Full-Text Articles in Economics
Does Financial Openness Promote Economic Integration?, Fabrizio Carmignani, Abdur Chowdhury
Does Financial Openness Promote Economic Integration?, Fabrizio Carmignani, Abdur Chowdhury
Economics Faculty Research and Publications
We estimate the effect of financial openness on economic integration for two clusters of countries: the formerly planned economies of Eastern Europe and central Asia (emerging market economies) and some western advanced economies. We focus on two dimensions of economic integration: convergence of per-capita incomes across countries and trade integration. We employ both single equation estimation and system estimation to account for endogenous links between trade integration and income convergence. Results show that in the cluster of emerging market economies, financial openness is a powerful instrument of economic integration. In the group of advanced economies, financial openness effectively facilitates income …
Effective Foreign Aid, Economic Integration And Subsidiarity: Lessons From Europe, Abdur Chowdhury, Paolo Garonna
Effective Foreign Aid, Economic Integration And Subsidiarity: Lessons From Europe, Abdur Chowdhury, Paolo Garonna
Economics Faculty Research and Publications
The paper shows that the question that is relevant for the debate on the efficacy of development assistance is not so much as an issue of how much, but rather for what. In view of the growing awareness of ODA’s inefficiency in achieving intended aims, this paper proposes an alternative approach to development assistance policies – economic integration and subsidiarity provides the conditions necessary for ODA to produce higher rates of economic growth on a sustainable basis. Europe is an excellent case in point, in this context. Europe has in the last decades experienced a number of success stories in …