Decomposing the Effects of Financial Liberalization: Crises vs. Growth

We present a new empirical decomposition of the effects of financial liberalization on economic growth and on the incidence of crises. Our empirical estimates show that the direct effect of financial liberalization on growth by far outweighs the indirect effect via a higher propensity to crisis. We also discuss several models of financial liberalization and growth whose predictions are consistent with our empirical findings.

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Year of publication:	2006-12
Authors:	Ranciere, Romain Rancière ; Tornell, Aaron ; Westermann, Frank
Institutions:	National Bureau of Economic Research (NBER)

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Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	IFM EFG published as Ranciere, Romain & Tornell, Aaron & Westermann, Frank, 2006. "Decomposing the effects of financial liberalization: Crises vs. growth," Journal of Banking & Finance, Elsevier, vol. 30(12), pages 3331-3348, December. Number 12806
Classification:	F3 - International Finance ; F32 - Current Account Adjustment; Short-Term Capital Movements ; F33 - International Monetary Arrangements and Institutions ; F36 - Financial Aspects of Economic Integration ; F43 - Economic Growth of Open Economies ; O4 - Economic Growth and Aggregate Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005049848