Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1003202 | Research in International Business and Finance | 2008 | 21 Pages |
Abstract
This paper aims to examine the impact of financial integration and information and communication technology (ICT) development on output volatility. It applies a two-country dynamic general equilibrium model, in which ICT is assumed to increase the volume and speed of capital flows. This model predicts that economies with a high ICT development or/and a high degree of financial integration exhibit greater output fluctuations in the face of monetary policy shocks, but lower output fluctuations in the face of fiscal policy shocks. The empirical findings estimated by using the panel vector autoregression approach and impulse response analysis support these predictions.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Kwan Wai Ko,