International Financial Remoteness and Macroeconomic Volatility

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.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 25 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.