Financial liberalization, crises, and economic growth
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Financial liberalization, crises, and economic growth by Inkoo Lee

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Published by Korea Institute for International Economic Policy in Seoul, Korea .
Written in English

Subjects:

  • Monetary policy.,
  • Finance -- Government policy.,
  • Financial crises.

Book details:

Edition Notes

Includes bibliographical references (p. [24]).

StatementInkoo Lee and Jonghyup Shin.
SeriesKIEP working paper -- 07-02
ContributionsShin, Jonghyup.
Classifications
LC ClassificationsHG230.3 .L44 2007
The Physical Object
Pagination26 p. ;
Number of Pages26
ID Numbers
Open LibraryOL19972188M
ISBN 109788932241805
LC Control Number2008559123

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  1. Introduction. Many banking crises have been preceded by financial liberalization. This link was noted as early as in a paper by Diaz-Alejandro ().More recently, Kaminsky and Reinhart () find that in 18 of the 26 banking crises they study, the financial sector had recently been liberalized. Caprio and Klingebiel (), Niimi (), and Gruben et al. () conclude that banks Cited by: Research and experience show that financial liberalization has two main effects, which can have both benefits and costs. Liberalization can lead to faster economic growth. But it can also increase the financial vulnerability of a country, even leading to a financial crisis. Financial Liberalization and Economic Growth.   The latest global financial and economic crisis of has shown the need to re-examine the desirability of financial liberalization. This book is undertaking such a study on the issue of financial and market liberalization by adopting sophisticated econometric by: 1. use a financial liberalization index to capture the impact of financial liberalization policies on economic growth, which was earlier constructed for Pakistan by Hye and Wizarat () using Bandiera et al. (). Eleven financial liberalization policy components were used by Hye and Wizarat to compute the financial liberalization index.

The latest global financial and economic crisis of has shown the need to re-examine the desirability of financial liberalization. This book is undertaking such a study on the issue of financial and market liberalization by adopting sophisticated econometric methods.   Financial liberalization and crisis. One main strand of the literature discusses the financial liberalization–economic growth relation. Klein and Olivei () and Quinn and Toyoda () find a positive effect of capital account liberalization on economic growth. In addition, the article argues that deregulation fosters growth through it effect on increasign economic participation of the population, coupled with increased risk pooling. The analysis of the effects of banking crises and financial liberalization on the varied growth sources is associated with the literatures on the banking sector fragility. FINANCIAL LIBERALIZATION, FINANCIAL DEVELOPMENT AND ECONOMIC the banking crises in Argentina and Chile in the early s. They are estimated to have caused losses in the order of 20–55 and 13–42 per cent of GDP, financial development and economic growth.

This study examines the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries.   Abstract. The purpose of this chapter is to investigate the growth–finance nexus with reference to the ‘financial liberalization’ thesis. This thesis can be succinctly summarized as amounting to freeing financial markets from any intervention and letting market forces determine the size and allocation of credit. ‘Liberalization, Financial Instability and Economic Development’ brings together a range of essays from Yılmaz Akyüz’s recent work, refuting the myth that emerging economies have now successfully decoupled from the North and have become new engines of growth. The book challenges the orthodoxy on the link between financial deepening and. However, financial liberalization also has led to higher GDP growth. In fact, the fastest-growing countries are typically those that have experienced boom-bust cycles. That is, there is a positive link between GDP growth and the bumpiness of credit, which is captured by the negative skewness --not by the variance-- of credit by: