This paper documents the expanding economic linkages between low-income countries (LICs) and a narrow group of “Emerging Market leaders” that have become major players in inter- national trade and financial flows. VAR models show that these linkages have increased the share of growth...

In this paper, we explore the link between stress in the domestic financial sector and the capital flightfaced by countries in the 2008-9 global crisis. Both the timing of emergence of internal financial stress indeveloping economies, and the size of the peak-trough declines in the stock price...