This paper reviews recent empirical evidence on the effects of financial globalization for developing economies, focusing on three key questions: (1) Does financial globalization promote economic growth in developing countries? (2) What is its impact on macroeconomic volatility in these countries? (3) What factors help harness the benefits of financial globalization? The paper finds that while financial globalization has increased significantly in recent decades, the relationship between financial integration and economic growth is not straightforward. There is some evidence of a "threshold effect," where the benefits of financial globalization are more likely to be detected when developing countries have a certain level of absorptive capacity. Additionally, the paper finds that financial globalization may have increased macroeconomic volatility, particularly in developing countries. The paper also highlights the importance of good institutions and governance in mitigating the risks of financial globalization. Overall, the paper suggests that financial globalization should be approached cautiously, with good institutions and macroeconomic frameworks viewed as important. The review of the available evidence does not provide a clear road map for the optimal pace and sequencing of integration.This paper reviews recent empirical evidence on the effects of financial globalization for developing economies, focusing on three key questions: (1) Does financial globalization promote economic growth in developing countries? (2) What is its impact on macroeconomic volatility in these countries? (3) What factors help harness the benefits of financial globalization? The paper finds that while financial globalization has increased significantly in recent decades, the relationship between financial integration and economic growth is not straightforward. There is some evidence of a "threshold effect," where the benefits of financial globalization are more likely to be detected when developing countries have a certain level of absorptive capacity. Additionally, the paper finds that financial globalization may have increased macroeconomic volatility, particularly in developing countries. The paper also highlights the importance of good institutions and governance in mitigating the risks of financial globalization. Overall, the paper suggests that financial globalization should be approached cautiously, with good institutions and macroeconomic frameworks viewed as important. The review of the available evidence does not provide a clear road map for the optimal pace and sequencing of integration.