that full credit, including © notice, is given to the source. Deep Financial Integration and Volatility

Essential parts of this paper were prepared while Sebnem Kalemli-Ozcan was visiting the European Central Bank as 2008 Duisenberg Fellow. She thanks the economists at the Bank for providing a stimulating research environment. Sebnem Kalemli-Ozcan is also grateful for financial support from the Marie Curie Actions of the 7th Framework Programme for the EU Enlargement. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies officia