This paper uses new data and new econometric techniques to investigate the impact
of international financial integration on economic growth and also to assess whether
this relationship depends on the level of economic development, financial development,
legal system development, government corruption, and macroeconomic policies. Using
a wide array of measures of international financial integration on 57 countries and
an assortment of statistical methodologies, we are unable to reject the null hypothesis
that international financial integration does not accelerate economic growth even
when controlling for particular economic, financial, institutional, and policy characteristics.