Within Gain, Structural Pain: Capital Account Liberalization and Economic Growth

2018 ◽  
Author(s):  
Xiang Li ◽  
Dan Su
Keyword(s):  
Economic Growth ◽  
Capital Account ◽  
Capital Account Liberalization

Capital Account Liberalization Institutions and Economic Growth in the Emerging World

2021 ◽  
Vol 7 (3) ◽  
pp. 749-756
Author(s):  
Muhammad Atiq-Ur- Rehman ◽  
Furrukh Bashir ◽  
Salyha Zulfiqar Ali Shah ◽  
Muhammad Azhar Bhatti
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Emerging Market ◽  
Output Growth ◽  
Capital Account ◽  
Capital Account Liberalization ◽  
Policy Makers ◽  
Institutional Variables ◽  
Institutional Infrastructure ◽  
The Impact

Purpose: The relationship between capital account liberalization and economic growth has been a fervently discussed subject among economists and policy-makers. The role of institutions is imperious to comprehensively investigate the impact of financial openness on growth. The objective of the study is to inspect the nexus between financial liberalization and economic growth after incorporating the contribution of institutional quality. Methodology: A panel of data on 17 emerging market economies (EMEs) is used for the period 1995-2019. We employ the GMM technique by using different de facto and de jure measures of financial liberalization along with institutional variables. Findings: The empirical results illustrate that better quality institutions strengthen the connection between capital account liberalization and output growth in the emerging World. Implications: The policymakers should focus on the more beneficial nature of financial liberalization such as FDI. Also, the policy should be aiming at availing the services of efficient human resources with proper institutional infrastructure.

Financial Liberalization, Banking Crises and Economic Growth: The Case of South Mediterranean Countries

2012 ◽  
Vol 12 (3) ◽  
pp. 1850264 ◽  
Author(s):  
Ousama Ben Salha ◽  
Tarek Bouazizi ◽  
Chaker Aloui
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Banking Crises ◽  
Capital Account ◽  
Negative Effects ◽  
Capital Account Liberalization ◽  
Dynamic Panel Model ◽  
Mediterranean Countries ◽  
Trade Opening ◽  
Equity Market Liberalization

The central aim of this paper is to empirically assess the effects of financial liberalization on economic growth in the presence of banking crises. Our empirical investigation is based on a dynamic panel model for a sample of 10 South Mediterranean countries during the period 1980-2005. Results suggest that equity market liberalization positively affects economic growth in these countries, especially in the period of fragility and banking crises. Capital account liberalization, however, has no significant effects. As expected, banking crises exert negative effects on economic growth. When we control for the presence of macroeconomic stability and appropriate openness sequencing, the anticipated effects of capital account liberalization become significant. We conclude that macroeconomic reforms and trade opening are both crucial prerequisites for the success of the capital account liberalization process.

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