Financial globalisation and human development

Singh, Ajit (2011): Financial globalisation and human development. Published in: Journal of Human Development , Vol. 13, No. 1 (2012): pp. 135-151.

Abstract

ABSTRACT

This paper is concerned essentially with the question, how does financial globalisation affect economic welfare? Orthodox theory suggests that because of greater risk-sharing between countries that financial liberalisation entails, there should be no welfare losses. Greater risk sharing should lead to greater smoothing of consumption and/or growth trajectories for developing countries. Yet there is widespread evidence of crises following liberalisation. Apart from these international macro-economic issues, it is argued here that financial globalization changes the very nature of capitalism from managerial to finance capitalism. This profoundly affects at the micro-economic level corporate governance, corporate finance and income distribution. Both macro- and micro-economic factors outlined here influence human development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial globalisation, capital account liberalisation, finance capitalism and human development
• Subjects: H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents; I - Health, Education, and Welfare > I0 - General

References

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