Economic integration boosts growth, but financial integration impact remains uncertain.
The article explores whether economic and financial integration lead to economic growth. It reviews studies on this topic in developed and developing countries. The research suggests that economic integration generally boosts growth through factors like capital accumulation and trade. However, adopting a common currency doesn't seem to have a significant impact on growth. The effects of financial integration on growth are less clear. Overall, the findings indicate that economic integration can enhance growth, but the impact of financial integration is uncertain.