Furthermore, it may be associated with higher consumption volatility. Therefore, there may be value for  2  BIS Review 57/2003  developing countries to experiment with different paces and strategies in pursuing financial integration. Empirical evidence does suggest that improving governance, in addition to sound macroeconomic frameworks and the development of domestic financial markets, should be an important element of such strategies.
It might not be essential for a country to develop a full set of sound institutions matching the best practices in the world before embarking on financial integration. Doing so might strain the capacity of the country.