Financial integration is measured by de facto indicators, based on the following arguments: i) de jure legal restrictions on FDI transactions may not adequately reflect actual exposure of countries to international capital markets, and in particular does not distinguish between inward and outward financial transactions, ii) the OECD indicator of legal barriers to FDI is available for a few years only, making it impossible to use it in a time-series context. One important shortcoming associated with de facto measures is the higher risk of endogeneity bias compared with de jure measures, implying the need to interpret associated results with caution. Braconier and Ruiz-Valenzuela (2014), Johansson and Olaberria (2014), OECD (2011b), Koske et al. (