The Experts below are selected from a list of 106710 Experts worldwide ranked by ideXlab platform
Michael W. Klein - One of the best experts on this subject based on the ideXlab platform.
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Capital Account liberalization financial depth and economic growth
Journal of International Money and Finance, 2008Co-Authors: Michael W. Klein, Giovanni P OliveiAbstract:Abstract We show a statistically significant and economically relevant effect of open Capital Accounts on financial depth and economic growth in a cross-section of countries over the periods 1986–1995 and 1976–1995. Countries having open Capital Accounts had a significantly greater increase in financial depth and, over the 20-year period, greater economic growth. These results, however, are largely driven by the developed countries included in the sample. The observed failure of Capital Account liberalization to promote financial deepening among developing countries suggests potentially important policy implications concerning the desirability of opening up the Capital Account.
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Capital Account liberalization institutional quality and economic growth theory and evidence
2005Co-Authors: Michael W. KleinAbstract:This paper shows that the effects of Capital Account liberalization on growth depend upon the environment in which that policy change occurs. A theoretical model demonstrates how the institutional quality of a country, reflecting the extent to which its Capital is protected from expropriation, affects the responsiveness of growth to Capital Account liberalization. In particular, this model predicts a non-monotonic, inverted-U shaped relationship between the amount of time during which the Capital Account is liberalized and economic growth. A specification drawn from this model is tested by considering the determinants of economic growth over the period 1976 - 1995 for a panel of 71 countries. The estimates of this model strongly support a non-monotonic interaction between Capital Account liberalization and institutional quality, with 20 percent of the countries, those with better (but not the best) institutions exhibiting a significant relationship between Capital Account openness and economic growth.
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Capital Account liberalization institutional quality and economic growth theory and evidence
National Bureau of Economic Research, 2005Co-Authors: Michael W. KleinAbstract:This paper shows that the effect of Capital Account liberalization on growth depends upon the environment in which that policy occurs. A theoretical model demonstrates the possibility of an inverted-U shaped relationship between the responsiveness of growth to Capital Account liberalization and institutional quality. Three empirical specifications based on the model are estimated using a panel of 71 countries. Estimates of all three specifications support the hypothesis of a non-monotonic interaction between the responsiveness of growth to Capital Account liberalization and institutional quality, with about one-quarter of the countries, those with better (but not the best) institutions exhibiting a statistically significant and economically meaningful effect of Capital Account openness on economic growth.
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Capital Account liberalization and economic performance survey and synthesis
IMF Staff Papers, 2004Co-Authors: Hali J Edison, Michael W. Klein, Luca A Ricci, Torsten M SloekAbstract:This paper surveys the literature on the effects of Capital Account openness and stock market liberalization on economic growth and provides a synthesis in which we reconcile some of the different results presented in the literature. Various empirical measures used to gauge the presence of controls on Capital Account transactions and the liberalization of equity markets are discussed. We compare detailed measures of Capital Account controls that attempt to capture the intensity of enforcement with other indicators that simply capture whether controls are present. A detailed review of the literature is followed by an empirical section in which we trace the divergence in published results to differences in country coverage, sample periods, indicators of liberalization, and control variables across studies. Specifically, we show that when an institutional variable such as government reputation is added to the specification, the significance of Capital Account openness vanishes. Also, we demonstrate that enriching the specification by allowing for nonlinearities helps explain why different studies that ignore the nonlinear nature of the relationship find different results.
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Capital Account Openness and the Varieties of Growth Experience
2003Co-Authors: Michael W. KleinAbstract:The effects of Capital Account openness on economic growth may vary across countries. Some countries may not have in place the constellation of institutions required to fully benefit from open Capital Accounts. Other countries may realize only small marginal improvements in the wake of Capital Account liberalization. This paper presents evidence of an inverted-U shaped relationship between the responsiveness of growth to Capital Account openness and income per capita. Middle-income countries benefit significantly from Capital Account openness. However, neither rich nor poor countries exhibit statistically significant positive effects. A similar inverted-U shaped relationship is found between the responsiveness of growth to Capital Account openness and various indicators of government quality.
Giovanni P Olivei - One of the best experts on this subject based on the ideXlab platform.
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Capital Account liberalization financial depth and economic growth
Journal of International Money and Finance, 2008Co-Authors: Michael W. Klein, Giovanni P OliveiAbstract:Abstract We show a statistically significant and economically relevant effect of open Capital Accounts on financial depth and economic growth in a cross-section of countries over the periods 1986–1995 and 1976–1995. Countries having open Capital Accounts had a significantly greater increase in financial depth and, over the 20-year period, greater economic growth. These results, however, are largely driven by the developed countries included in the sample. The observed failure of Capital Account liberalization to promote financial deepening among developing countries suggests potentially important policy implications concerning the desirability of opening up the Capital Account.
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Capital Account liberalization financial depth and economic growth
National Bureau of Economic Research, 1999Co-Authors: Michael W. Klein, Giovanni P OliveiAbstract:We show a statistically significant and economically relevant effect of open Capital Accounts on financial deepness and economic growth in a cross-section of countries over the period 1986 to 1995. Countries with open Capital Accounts over some or all of this period had a significantly greater increase in financial depth than countries with continuing Capital Account restrictions, and they also enjoyed greater economic growth. These results, however, are largely driven by the developed countries included in the sample. The observed failure of Capital Account liberalization to promote financial deepness among developing countries suggests potentially important policy implications concerning the desirability of opening up the Capital Account.
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Capital Account liberalization financial depth and economic growth
National Bureau of Economic Research, 1999Co-Authors: Michael W. Klein, Giovanni P OliveiAbstract:We show a statistically significant and economically relevant effect of open Capital Accounts on financial deepness and economic growth in a cross-section of countries over the period 1986 to 1995. Countries with open Capital Accounts over some or all of this period had a significantly greater increase in financial depth than countries with continuing Capital Account restrictions, and they also enjoyed greater economic growth. There results, however, are largely driven by the developed countries in the sample. The observed failure of Capital Account liberalization to promote financial deepness among developing countries suggests potentially important policy implications concerning the desirability of liberalizing the Capital Account.
Barry Eichengreen - One of the best experts on this subject based on the ideXlab platform.
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Capital Account Liberalization
The World Bank Economic Review, 2012Co-Authors: Barry EichengreenAbstract:Capital Account liberalization, it is fair to say, remains one of the most controversial and least understood policies of our day. One reason is that different theoretical perspectives have very different implications for the desirability of liberalizing Capital flows. Another is that empirical analysis has failed to yield conclusive results.
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Capital Account liberalization financial development and industry growth a synthetic view
Journal of International Money and Finance, 2011Co-Authors: Barry Eichengreen, Rachita Gullapalli, Ugo PanizzaAbstract:This paper synthesizes studies analyzing the effects of Capital Account liberalization on industry growth while controlling for financial crises, domestic financial development and the strength of institutions. We find evidence that financial openness has positive effects on the growth of financially dependent industries, although these growth-enhancing effects evaporate during financial crises. Further analysis indicates that the positive effects of Capital Account liberalization are limited to countries with relatively well-developed financial systems, good Accounting standards, strong creditor rights and rule of law. It suggests that countries must reach a certain threshold in terms of institutional and economic development before they can expect to benefit from Capital Account liberalization.
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Capital Account liberalization financial development and industry growth a synthetic view
2009Co-Authors: Barry Eichengreen, Rachita Gullapalli, Ugo PanizzaAbstract:This paper synthesizes previous studies analyzing the effects of Capital Account liberalization on industry growth while controlling for financial crises, domestic financial development and the strength of institutions. We find reasonably strong evidence that financial openness has positive effects on the growth of financially-dependent industries, although these growth-enhancing effects evaporate during financial crises. Further analysis indicates that the positive effects of Capital Account liberalization are limited to countries with relatively well-developed financial systems, good Accounting standards, strong creditor rights and rule of law. It suggests that countries must reach a certain threshold in terms of institutional and economic development before they can expect to benefit from Capital Account liberalization.
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when does Capital Account liberalization help more than it hurts
National Bureau of Economic Research, 2001Co-Authors: Carlos Arteta, Barry Eichengreen, Charles WyploszAbstract:In this paper we reconsider the evidence on Capital Account liberalization and growth. While we find indications of a positive association, the effects vary with time, with how Capital Account liberalization is measured, and with how the relationship is estimated. The evidence that the effects of Capital Account liberalization are stronger in high-income countries is similarly fragile. There is some evidence that the positive growth effects of liberalization are stronger in countries with strong institutions, as measured by standard indicators of the rule of law, but only weak evidence that the benefits grow with a country's financial depth and development. We find more evidence of a correlation between Capital Account liberalization and growth when we allow the effect to vary with other dimensions of openness. There are two interpretations of this finding, one in terms of the sequencing of trade and financial liberalization, the other in terms of the need to eliminate major macroeconomic imbalances before opening the Capital Account. By and large our results support the second interpretation.
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Capital Account Liberalization: Theoretical and Practical Aspects
1998Co-Authors: Michael Mussa, Barry Eichengreen, Giovanni Dell'ariccia, Enrica DetragiacheAbstract:Capital Account liberalization - orderly, properly sequence, and befitting the individual circumstances of countries- is an inevitable step for all countries wishing to realize the benefits of the globalized economy. This paper reviews the theories behind Capital Account liberalization and examines the dangers associated with free Capital flows. The authors conclude that the dangers can be limited through a combination of sound macroeconomic and prudential policies.
Hali J Edison - One of the best experts on this subject based on the ideXlab platform.
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Capital Account liberalization and economic performance survey and synthesis
IMF Staff Papers, 2004Co-Authors: Hali J Edison, Michael W. Klein, Luca A Ricci, Torsten M SloekAbstract:This paper surveys the literature on the effects of Capital Account openness and stock market liberalization on economic growth and provides a synthesis in which we reconcile some of the different results presented in the literature. Various empirical measures used to gauge the presence of controls on Capital Account transactions and the liberalization of equity markets are discussed. We compare detailed measures of Capital Account controls that attempt to capture the intensity of enforcement with other indicators that simply capture whether controls are present. A detailed review of the literature is followed by an empirical section in which we trace the divergence in published results to differences in country coverage, sample periods, indicators of liberalization, and control variables across studies. Specifically, we show that when an institutional variable such as government reputation is added to the specification, the significance of Capital Account openness vanishes. Also, we demonstrate that enriching the specification by allowing for nonlinearities helps explain why different studies that ignore the nonlinear nature of the relationship find different results.
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Capital Account liberalization and economic performance survey and synthesis
IMF Staff Papers, 2002Co-Authors: Hali J Edison, Michael W. Klein, Luca A Ricci, Torsten SlokAbstract:This paper reviews the literature on the effects of Capital Account liberalization and stock market liberalization on economic growth. The various empirical measures used to gauge the presence of controls on Capital Account transactions as well as indicators of stock market liberalization are discussed. We compare detailed measures of Capital Account controls that attempt to capture the intensity of enforcement with others that simply capture whether or not controls are present. Our review of the literature shows the contrasting results that have been obtained. These differences may reflect differences in country coverage, sample periods and indicators of liberalization. In order to reconcile these differences, we present new estimates of the effects on growth of Capital Account liberalization and stock market liberalization. We find some support for a positive effect of Capital Account liberalization on growth, especially for developing countries.
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Capital Account Liberalization and Economic Performance : Survey and Synthesis
IMF Working Papers, 2002Co-Authors: Torsten M Sloek, Michael W. Klein, Luca A Ricci, Hali J EdisonAbstract:This paper reviews and discusses issues involved in assessing the relationship between Capital Account liberalization and economic performance. First, it discusses the different measures of restrictions used in the literature. Second, it reviews the literature on the relationship between growth and Capital Account liberalization. Finally, it identifies and explains some of the differences in the results of the various studies and provides some support for a positive effect of Capital Account liberalization on growth, especially for developing countries.
Philip Arestis - One of the best experts on this subject based on the ideXlab platform.
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Capital Account liberalisation and poverty how close is the link
Cambridge Journal of Economics, 2010Co-Authors: Philip Arestis, Asena CanerAbstract:The literature on the theoretical and empirical aspects of the relationship between finance and economic growth is both substantial and extensive. The same cannot be said on the relationship between financial development and poverty reduction--an equally important aspect. In this study, we visit the theoretical arguments and conduct an empirical analysis of the relationship between the Capital Account dimension of financial liberalisation and poverty for developing countries for the period 1985-2005. In particular, we employ the 'system GMM' technique to test whether Capital Account liberalisation has helped alleviate poverty, and also whether the extent to which Capital Account liberalisation affects poverty depends on the quality of institutions. We also use OLS and IV techniques to verify our findings. Our findings indicate that there is no statistically significant relationship between the degree of Capital Account liberalisation during the period and the poverty rate. Developing countries with higher institutional quality have lower poverty rates, but the effect has low statistical significance. A higher degree of Capital Account liberalisation is associated with a lower income share for the poor.
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Capital Account Liberalisation and Poverty: How Close is the Link?
Cambridge Journal of Economics, 2009Co-Authors: Philip Arestis, Asena CanerAbstract:The literature on the theoretical and empirical aspects of the relationship between finance and economic growth is both substantial and extensive. The same cannot be said on the relationship between financial development and poverty reduction--an equally important aspect. In this study, we visit the theoretical arguments and conduct an empirical analysis of the relationship between the Capital Account dimension of financial liberalisation and poverty for developing countries for the period 1985--2005. In particular, we employ the 'system GMM' technique to test whether Capital Account liberalisation has helped alleviate poverty, and also whether the extent to which Capital Account liberalisation affects poverty depends on the quality of institutions. We also use OLS and IV techniques to verify our findings. Our findings indicate that there is no statistically significant relationship between the degree of Capital Account liberalisation during the period and the poverty rate. Developing countries with higher institutional quality have lower poverty rates, but the effect has low statistical significance. A higher degree of Capital Account liberalisation is associated with a lower income share for the poor. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.
