Financial integration: benefits and risks.


  • M.A. Davtyan Yerevan State University

Ключові слова:

financial integration, financial globalization, financial markets, risk, benefit


In this article is presented the benefits and risks of financial integration and globalization. The main benefit of financial integration is development of domestic financial system. At the same time financial integration poses risks by crisis and contagion. In the article is also analyzed the consequences of financial integration in CIS countries, where financial integration lead to as positive as well as negative results.

Біографія автора

M.A. Davtyan, Yerevan State University

PhD student of “International Economic Relations” department, Economics Faculty


Sergio L. Schmukler, “Financial Globalization: Gain and Pain for Developing Countries”, Federal Reserve Bank of Atlanta, economic review, second quarter 2004.

The importance of capital markets for economic growth has been emphasized. The literature focused on the positive link between financial development (represented by different measures) and growth, such as King and Levine (1993), Atje and Jovanovic (1993), Levine and Zervos (1998), Levine, Loayza, and Beck (2000), Beck and Levine (2002), Rajan and Zingales (1998), Demirgüç-Kunt and Maksimovic (1998), Levine (2001). The evidence strongly indicates that financial development spurs economic growth.

Frankel Jeffrey, “Globalization of the economy. In Governance in a Globalizing World”, edited by Joseph S. Nye Jr. and John D. Donahue. Washington, D.C.: Brookings Institution Press, pages 45-71, 2000., World Bank, World Development Indicators (WDI) & Global Development Finance (GDF).

Eduardo Borensztein and Prakash Loungani, “Asian Financial Integration: Trends and Interruptions”, IMF Working Paper, January 2011,