Stock market liberalizations provide a natural experiment to test for the causal relation between financial development and economic growth. We test this relation by investigating whether liberalizations facilitate growth through the particular mechanism of reducing capital market imperfections that drive a wedge between the external and internal cost of capital to firms. Using panel data on a ...

We explore the consequences of liberalized credit markets for growth and inequality in a lifecycle economy with physical and human capital accumulation, populated by households of different abilities, and calibrated to match the longrun economic performance of a panel of emerging countries. Relatively modest improvements in extending credit to the ablest households appear to have large economic...

We discuss the pros and cons of the liberalization of international capital flows and international trade in goods and services, with special reference to India. We look at both the theoretical and empirical literature studying the impact of capital flows and trade in goods on real incomes, growth and productivity growth. Both macroand micro-level evidence is surveyed. We also review country-sp...

This note presents a simple setup of credit liberalization. We find that the effect is not uniform but depends on level GDP. In other words, model predicts richer countries benefit more than poor from opening up their capital account. finding has important policy implications, as it suggests developing economies should be cautious when comes to liberalization

This paper empirically examines whether de facto exchange rate regimes affect the occurrence of currency crises in 84 countries over the 1980–2001 period by using the probit model. We employ the de facto classification of Reinhart and Rogoff (2004) that allows us to estimate the impact of relatively long-lived exchange rate regimes on currency crises with much greater precision. We find that pe...

in this paper, besides of studying and reviewing the theoretical analysis of the trade liberalization and industrial growth, the effect of trade liberalization on productivity in the industrial sector of the iran`s economy are investigated. in this study, a translog cost function and sur model for the period of 1974-2006 are used in order to evaluate the trade liberalization variable. at first,...