THE CHALLENGE OF ECONOMIC GROWTH AND EQUITY

ABSTRACT. The intensification of globalization has increased the demand for multilateral cooperation and the provision of global public goods; global politics is anchored not just in traditional geopolitical concerns but also in a large diversity of economic, social and ecological questions. If there are many risky technologies available, financial openness may increase the equilibrium growth rate by leading to a reallocation of savings to projects with high risk and return.