engleski

Globalization and Growth in Emerging Market Economies

Emerging market economies are engaged in a rapid cathching-up process where convergence is driven by similar lines of production, trade and financial linkages and knowledge spillovers. Two big emerging regions converge to two distinct cores: the Euro area and the United States. The nature of trade and financial linkages within those regions to a large degree determine respective patterns of real convergence. The process of accession to the European Union in emerging European economies creates favorable environment for those countries because the European periphery joins the core by accepting its key institutions, laws and governance practices. Macroeconomic and financial stability challenges in those countries involve sizeable external imbalances, credit risks, rising inflation and delays in the implementation of structural reforms.

financial globalization; economic growth; conditional convergence; stability challenges

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