Financial integration can impact economic growth and risk sharing between countries. A study using a neoclassical growth model shows that integrating financial markets can lead to more efficient capital allocation and better risk sharing. This can affect the steady-state of the economy and change how capital accumulation affects growth. The study also finds that different countries may experience varying effects of financial integration on output, capital flows, consumption, and overall welfare. These findings suggest that financial integration can have complex and varied effects on economies over time.