severely regulated. We identify the latter two groups as falling in “liberalization traps”. Institutional quality interacts …

. Using a recent comprehensive dataset on financial liberalization across 94 countries for the period between 1973 and 2015 … liberalization process restarts a few years after a financial crisis. One decade later, financial markets have returned to their pre …-crisis level of liberalization. In the EU sample, however, we do not find sufficient evidence to support these observations. …