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Converge or integrate? A note on Gourinchas and Jeanne : The elusive gains from international financial integration

Author

Listed:
  • Philippe Darreau

    (University of Limoges)

  • Francois Pigalle

    (University of Limoges)

Abstract

Gourinchas and Jeanne (2006) explain that the gains from capital market integration are small because the natural convergence of economies would have "done the work" of integration if it had not occurred. We provide a simple illustration of this standard theoretical argument using the simplest Solow model in a small open economy.

Suggested Citation

  • Philippe Darreau & Francois Pigalle, 2016. "Converge or integrate? A note on Gourinchas and Jeanne : The elusive gains from international financial integration," Economics Bulletin, AccessEcon, vol. 36(2), pages 789-792.
    • Handle: RePEc:ebl:ecbull:eb-16-00203
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I2-P77.pdf
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    References listed on IDEAS

    as
    1. Pierre-Olivier Gourinchas & Olivier Jeanne, 2006. "The Elusive Gains from International Financial Integration," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(3), pages 715-741.
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    Cited by:

    1. Philippe Darreau & Francois Pigalle, 2017. "International financial integration: Ramsey vs Solow," Economics Bulletin, AccessEcon, vol. 37(2), pages 1381-1392.

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    More about this item

    Keywords

    Capital flows; international financial integration; growth; Solow model.;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F2 - International Economics - - International Factor Movements and International Business

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