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

Philippe Darreau (1) , François Pigalle (1)

1 LAPE - Laboratoire d'Analyse et de Prospective Economique

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.

Mots clés: International ​financial integration

Domaines: Sciences de l'Homme et Société; Economies et finances

Philippe Darreau, François Pigalle. Converge or integrate? A note on Gourinchas and Jeanne : The elusive gains from international ​financial integration . Economics Bulletin, 2016, 36 (2), pp.789-792. ⟨hal-01324727⟩