Decomposing the effects of financial liberalization: Crises vs. growth

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

MoreLess

Year of publication:	2006
Authors:	Ranciere, Romain ; Tornell, Aaron ; Westermann, Frank
Publisher:	Osnabrück : Osnabrück University, Institute of Empirical Economic Research

More details

Series:	Working Paper ; 74
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	729718905 [GVK] hdl:10419/66515 [Handle] RePEc:iee:wpaper:wp0074 [RePEc]
Classification:	F34 - International Lending and Debt Problems ; F36 - Financial Aspects of Economic Integration ; F43 - Economic Growth of Open Economies ; O41 - One, Two, and Multisector Growth Models
Source:	EconStor

Persistent link: https://www.econbiz.de/10010289316