The aim of the paper is to evaluate the welfare gains from financial integration for developing and emerging economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and (iii)...

Empirically, growth rates are negatively correlated with birth rates; they are also correlated with production risk. We argue that these stylized facts are related, and arise jointly from the decision of how many children to have in a risky economic environment.