Financial Globalization, the Democratic Deficit and Recurrent Crises in Emerging Markets: the Turkish Experience in the Aftermath of Capital Account Liberalization

We review the debate on the association of financial globalization with inequality. We show that the within-country distributional impact of capital account liberalization is context specific and that different types of flows have different distributional effects. Their overall impact depends on the composition of capital flows, their interaction, and on broader economic and institutional conditions. A comprehensive set of policies – macroeconomic, financial and labor- and product-market specific – is important for facilitating wider sharing of the benefits of financial globalization.

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Neoliberal Economists and Capital Account Liberalization in Emerging Markets

International Organization ◽

10.1017/s0020818307070154 ◽

2007 ◽

Vol 61 (02) ◽

Cited By ~ 95

Author(s):

Jeffrey Chwieroth

Keyword(s):

Emerging Markets ◽

Capital Account ◽

Capital Account Liberalization

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Capital account liberalization and its effects on economic growth and financial instability: the exante orthodox models were wrong

Brazilian Journal of Political Economy ◽

10.1590/0101-31572020-3027 ◽

2020 ◽

Vol 40 (4) ◽

pp. 669-688

Author(s):

DIEGO GARCIA ANGELICO ◽

GIULIANO CONTENTO DE OLIVEIRA

Keyword(s):

Emerging Economies ◽

Financial Crises ◽

Empirical Studies ◽

Financial Instability ◽

Capital Account ◽

Financial Globalization ◽

Capital Account Liberalization ◽

Multilateral Institutions ◽

Theoretical Assumptions ◽

The Subject

ABSTRACT The financial crises in emerging economies during the 1990s and 2000s propelled academia and multilateral institutions to investigate whether the promised benefits of capital account liberalization were being delivered or not. In the course of empirical studies on the subject, many ex ante theoretical assumptions on financial globalization were demystified, and previously unknown risks and dysfunctions began to be evidenced. This article analyzes the main empirical studies on the effects of financial globalization published in the last two decades and shows that the main conventional assumptions that were built to theoretically base the capital account liberalization processes that occurred in the 1980s and 1990s were wrong.

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