Contrary to the predictions of standard economic theory, capital market liberalization has been a mixed blessing for many countries. Liberalization of debt inflows exposes economies to the risk of crises stemming from sudden changes in investor sentiment. Equity market liberalizations, on the other hand, have promoted growth in almost every liberalizing country. Yet equity market liberalization...

This paper introduces moral hazard into a standard general equilibrium model with heterogeneous …rms, to study the impact of trade liberalization on wage inequality between identical workers. I show that trade liberalization operates on two margins of inequality, generating betweenand within-…rm wage dispersion. While the former channel has been studied in recent papers, the latter is novel in ...

This paper investigates the implications for international markets of the existence of retailers/wholesalers with market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in autarky, thus reversing the standard e¤e...

The goal of this study is to investigate the effect of trade liberalization on economic growth in Iranian economy using a Cobb–Douglas production function, which is expanded to take into account political instability and trade liberalization. The empirical results show that in the long run the real export and import duty have positive effect on GDP, while the Labor force and education causes to...

This paper surveys recent evidence suggesting that market-oriented institutions and policies are strongly related to economic growth, focusing on studies using the economic freedom indicator of the Fraser Institute. This index is critically discussed. Also various serious shortcomings of empirical studies using this index are identified. Nevertheless there are strong indications that liberaliza...

Financial liberalization has been a controversial issue, as empirical evidence for growth enhancing effects is mixed. Here, we find sizable welfare gains from liberalization (cost to repression), though the gain in economic growth is ambiguous. We take the view that financial liberalization is a government policy that alters the path of financial deepening, while financial deepening is endogeno...

one of the most controversial aspects of financial markets is capital market liberalization of course not so liberalization under the rules of governmental severities. based on financial theories there are a number of reasons , that capital flows openness should lead to increases in economic growth. on the other hand most economists believe that the cost of openness outweigh the benefits , such...

In this paper, we present a further liberalization of the-rule in free variable semantic tableaux. It is eeective in that (1) it is both a natural and intuitive liberalization, and (2) can reduce the proof size non elementarily as compared to previous versions of the-rule.

Empirical work relating trade liberalization and income distribution has identified an important anomaly. The Stolper-Samuelson theorem predicts that trade liberalization will shift income toward a country’s abundant factor. For developing countries, this suggests liberalization will principally benefit the abundant unskilled labor. Yet extensive empirical studies have identified many cases wit...