The East Asian crisis of 1997-98 and the Mexican crisis of 1994 generated much concern among policy analysts regarding the role of macroeconomic policies in the management of capital inflows. A series of economic reform measures including liberalization of foreign capital inflows were initiated in India since the early nineties. Using the vector autoregression (VAR) method, this paper specifica...

The paper has three purposes. First, it explains how the impact of liberalization of service sectors on output growth differs from that of liberalization of trade in goods. Second, it suggests a policy-based rather than outcome-based measure of the openness of a country’s services regime. Such openness measures are constructed for two key service sectors, basic telecommunications and financial ...

according to endogenous tariff hypothesis, tariff is endogenously determined by the set of political economy factors. using the co- integrated var approach and in the framework of the hypothesis, the present study examined the determinants of tariff protection in iran over the period 1971-2010. based on the results, though no evidence has been obtained about the impact of unemployment and impor...

a r t i c l e i n f o JEL classification: E32 F36 G15 Keywords: Financial openness Business cycle asymmetry Development This paper provides evidence that financial openness is an important determinant of growth rate asymmetry in emerging markets. I exploit exogenous shocks to financial flows and examine the impact of equity market liberalization on the skewness of output growth for 93 countries...

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms’ profits despite intensified competition. (JEL Classification: D43, F12, L13) ∗e-mail: [email protected] †We would like to thank David And...

One of the disputed consequences of global economic integration is the possible effect that foreign economic liberalization exerts on social cohesion. Proponents of commercial liberalism see stabilization as an indirect consequence of growing economic interdependence, while globalization critics are much more skeptical. They expect, at least during the liberalization process, destabilizing effe...