Abstract
National financial systems of both developed and developing countries have experienced a serious wave of deregulation during the last thirty years. This was implemented by the countries’ governments, in order to promote investment, growth and employment in stabilised macroeconomic conditions (Aglietta et al., 1990). Barriers to international mobility of capital have, therefore, been erased in many countries, something which leads to financial markets being far better integrated today than they were thirty years ago.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Adler, M. and Dumas, B. (1975) Optimal international acquisitions. Journal of Finance, 30: 1–19.
Agénor, P.-R. (2003) Benefits and costs of international financial integration: theory and facts. World Economy, 26: 1089–118.
Aglietta, M., Brender, A. and Coudert, V. (1990) Globalisation financière: l’aventure obligée. Paris: Economica.
Ahimud, Y. and Mendelson, H. (1986) Asset pricing and the bid-ask spread. Journal of Financial Economics, 17: 223–49.
Alexander, G.J., Eun, C.S. and Janakiramanan, S. (1987) Asset pricing and dual listing on foreign capital markets: a note. Journal of Finance, 42: 151–8.
Alfaro, L. and Charlton, A. (2007) International financial integration and entrepreneurial firm dynamics. Harvard Business School Working Paper, Number 07-012.
Bekaert, G. and Harvey, C. (2000) Foreign speculators and emerging equity markets. Journal of Finance, 55: 565–613.
Bekaert, G., Harvey, C.R. and Lundblad, C. (2005) Does financial liberalisation spur growth? Journal of Financial Economics, 77: 3–55.
Bhagwati, J. (1998) The capital myth. Foreign Affairs, 77: 7–12.
Bouchet, M.-H. (2005) La Globalisation. Paris: Pearson Education.
Boyer, R. (2000) Deux défis pour le XXIè siècle: discipliner la finance et organiser l’internationalisation. Cepremap Working Paper, 2000–08.
Caprio, G. and Honohan, P. (1999) Restoring banking stability: beyond supervised capital requirements. Journal of Economic Perspectives, 13: 43–64.
Chari, A. and Henry, P.B. (2004) Risk sharing and asset prices: evidence from a natural experiment. Journal of Finance, 59: 1295–1324.
Claessens, S., Demirguc-Kunt, A. and Huizinga, H. (2000) ‘The role of foreign banks in domestic banking systems’ in S. Claessens and M. Jansen (eds) The Internationalisation of Financial Services. The Hague: Kluwer Books.
Clark, E. (1997) Valuing political risk as an insurance policy. Journal of International Money and Finance, 16: 477–90.
Clark, E., Marois, B. and Cernès, J. (2001) Le Management des Risques Internationaux. Paris: Economica.
Clarke, G., Cull, R., d’Amato, L. and Mollinari, A. (2000) ‘On the Kindness of Strangers? The impact of foreign entry on domestic banks in Argentina’ in S. Claessens and M. Jansen (eds) The Internationalisation of Financial Services. The Hague: Kluwer Books.
Das, D.K. (2006) Globalisation in the world of finance: an analytical history. Global Economy Journal, 6: 1–22.
Demirguc-Kunt, A. and Huizinga, H. (1999) Determinants of interest margins and profitability: some international evidence. World Bank Economic Review, 13: 379–408.
Errunza, V. and Losq, E. (1985) International asset pricing under mild segmentation: theory and test. Journal of Finance, 40: 105–24.
Evans, D.S. and Jovanovic, B. (1989) An estimated model of entrepreneurial choice under liquidity constraints. Journal of Political Economy, 97: 808–27.
Evans, D.S. and Leighton, L.S. (1989) Some empirical aspects of entrepreneurship. American Economic Review, 79: 519–35.
Feldstein, M. and Horioka, C. (1980) Domestic saving and international capital flows. Economic Journal, 90: 314–29.
Fontaine, P. (1988) Arbitrage et Évaluation Internationale des Actifs Financiers. Paris: Economica.
Gianetti, M. and Ongena, S. (2005) Financial integration and entrepreneurial activity: evidence from foreign bank entry in emerging markets. ECB Working Paper Series, Number 498.
Grossman, G. (1984) International trade, foreign investment, and the formation of the entrepreneurial class. American Economic Review, 74: 605–14.
Harris, G. and Guerel, E. (1986) Price and volume effects associated with the new S&P 500 list: new evidence for the existence of price pressure. Journal of Finance, 41: 815–29.
Hausman, R. and Rodrik, D. (2003) Economic development as self-discovery. Journal of Development Economics, 72: 603–33.
Henry, P.B. (2000a) Do stock market liberalisations cause investment booms? Journal of Financial Economics, 58: 301–34.
— (2000b) Stock market liberalisation, economic reform, and emerging market equity prices. Journal of Finance, 55: 529–64.
— (2003) Capital account liberalisation, the cost of capital, and economic growth. American Economic Review, 93: 91–6.
Hirschman, A. (1958) The Strategy of Economic Development. New Haven: Yale University Press.
Hubbard, G. (1998) Capital market imperfections and investment. Journal of Economic Literature, 36: 193–225.
Kaldor, N. (1940) Spéculation et stabilité économique. Revue Française d’Economie, 2: 115–64.
Karolyi, A. and Stulz, R. (2003) ‘Are assets priced locally or globally?’ in G. Constantinides, M. Harris and R. Stulz (eds) The Handbook of the Economics of Finance. New York: North-Holland Publishers.
Kim, H.E. and Singal, V. (2000) Stock market openings: experience of emerging economies. Journal of Business, 73: 25–66.
King, R.G. and Levine, R. (1993a) Finance and growth: Schumpeter might be right. Quarterly Journal of Economics, 108: 717–37.
King, R.G. and Levine, R. (1993b) Finance, entrepreneurship and growth: theory and evidence. Journal of Monetary Economics, 32: 513–42.
Leersnyder de, J.M. (2001) ‘Les nouveaux risques commerciaux’ in P Chaigneau (ed.) La Gestion des Risques Internationaux. Paris: Economica.
Levine, R. (1996) ‘Foreign banks, financial development, and economic growth’ in C.E. Barfield (ed.) International Financial Markets. Washington DC: American Enterprise Institute Press.
Levine, R. and Servos, S. (1998) Capital control liberalization and stock market development. World Development, 26: 1169–83.
Mahar, M. and Williamson, J. (1999) A survey of financial liberalization. Princeton Essays in International Finance, 211.
Marois, B. (2000) Le risque-pays revisité. Revue Française de Gestion, 133.
Mitton, T. (2006) Stock market liberalisation and operating performance at the firm level. Journal of Financial Economics, 81: 625–47.
Obstfeld, M. (1994) Risk-taking, global diversification and growth. American Economic Review, 84: 1310–29.
— (1998) The global capital market: benefactor or menace? Journal of Economic Perspectives, 12: 9–30.
Obstfeld, M. and Rogoff, K. (1995) Foundation of International Macroeconomics. Cambridge MA: MIT University Press.
Obstfeld, M. and Taylor, A.M. (1998) ‘The Great Depression as a watershed: international capital mobility over the long run’ in M.D. Bordo, C.D. Goldin and E.N. White (eds) The Defining Moment: The Great Depression and the American Economy in the Twentieth Century. Chicago: University of Chicago Press.
OECD (Organisation for Economic Cooperation and Development) (1996) Tendances des marchés de capitaux, 64 (June): 47–50.
Pépin, D. (2004) Globalisation des marchés de capitaux et valorisation des actifs financiers. Revue Économique, 55: 207–26.
Rodrik, D. (1998) Who needs capital account convertibility? Princeton Essays in International Finance, 207: 55–65.
Schularick, M. (2006) A tale of two ‘globalizations’: capital flows from rich to poor in two eras of global finance. International Journal of Finance and Economics, 11: 339–54.
Schumpeter, J.A. (1935; original edition 1926) Théorie de l’évolution économique, recherches sur le profit, le crédit, l’intérêt et le cycle de la conjoncture. Paris: Dalloz.
Shleifer, A. (1986) Do demand curves for stocks slope down? Journal of Finance, 46: 579–90.
Solnik, B. (1973) European Capital Markets. Maryland: Lexington Books.
— (1974) Why not diversify internationally rather than domestically? Financial Analysts Journal, 30: 48–54.
Sorensen, B.E., Wu, Y.-T., Yosha, O. and Shu, Y. (2004) Home bias and international risk sharing: twin puzzles separated at birth. Working Paper, University of Houston.
Stapleton, R.C. and Subrahmanyam, M.G. (1977) Market imperfections, capital market equilibrium and corporation finance. Journal of Finance, 32: 307–19.
Stewart, B. (1991) The Quest for value. New York: Harper Business.
Stiglitz, J. (2000) Capital market liberalization, economic growth, and instability. World Development, 25: 1075–86.
— (2002) Globalization and its Discontent. New York: W.W. Norton.
Stulz, R.M. (1981) A model of international asset pricing. Journal of Financial Economics, 9: 383–406.
— (1999) Globalization of equity markets and the cost of capital. NBER Working Paper, 7021. Cambridge MA: National Bureau of Economic Research.
— (2005) The limits of globalization. Journal of Finance, 60: 1595–638.
UNCTAD (United Nations Conference on Trade and Development) (2007) World Investment Report, Transnational Corporations, Extractive Industries and Development. Geneva: United Nations.
World Bank (2007) Global Development Finance 2007: the Globalization of Corporate Finance in Developing Countries. Washington DC: World Bank.
Editor information
Copyright information
© 2010 Sophie Nivoix and Dominique Pépin
About this chapter
Cite this chapter
Nivoix, S., Pépin, D. (2010). Interests and Limits of Globalisation as an Investment-Creating Process. In: Milliot, E., Tournois, N. (eds) The Paradoxes of Globalisation. Palgrave Macmillan, London. https://doi.org/10.1057/9780230303966_14
Download citation
DOI: https://doi.org/10.1057/9780230303966_14
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32651-8
Online ISBN: 978-0-230-30396-6
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)