Working Paper: NBER ID: w7763
Authors: Geert Bekaert; Campbell R. Harvey; Christian Lundblad
Abstract: We provide an analysis of real economic growth prospects in emerging markets after financial liberalizations. In contrast with previous research, we identify the financial liberalization dates and examine the influence of liberalizations while controlling for a number of other macroeconomic and financial variables. Our work also introduces an econometric methodology that allows us to use extensive time-series as well as cross-sectional information for our tests. We find across a number of different specifications that financial liberalizations are associated with significant increases in real economic growth.
Keywords: financial liberalization; economic growth; emerging markets
JEL Codes: G01; P3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Economic growth (O00) | Financial liberalizations (F30) |
| Financial liberalizations (F30) | Economic growth (O00) |