Financialization in Developing and Emerging Countries A Survey

This article attempts to summarize the growing literature on "financialization" in developing and emerging countries. This includes the different theoretical and empirical works that have explicitly referred to the increasing role of finance in such countries as financialization, as well as the recent developments in non-conventional approaches to finance and development. The article covers the main theoretical approaches that have been used to explain the phenomenon, trying to set out what the specific characteristics of the role of finance are in such countries. It then presents an overview of the key empirical facts associated with Financialization that have come out of such literatures with respect to both the changing role of the domestic financial sector and the impact of external factors, with particular reference to capital account openness.