Capital account liberalization, institutions and financial development

cross country evidence by Menzie David Chinn

Publisher: National Bureau of Economic Research in Cambridge, MA

Written in English
Published: Pages: 42 Downloads: 570
Share This

Subjects:

  • Capital movements.,
  • Financial institutions.,
  • Economic development.
  • Edition Notes

    StatementMenzie D. Chinn, Hiro Ito.
    SeriesNBER working paper series -- no. 8967, Working paper series (National Bureau of Economic Research) -- working paper no. 8967.
    ContributionsIto, Hiro., National Bureau of Economic Research.
    The Physical Object
    Pagination42 p. :
    Number of Pages42
    ID Numbers
    Open LibraryOL22436618M

Capital Account Liberalization and Poverty: How Close is the Link? Philip Arestis, ∗ and Asena Caner, ∗∗ Abstract. The literature on the theoretical and empirical aspects of the relationship between finance and economic growth is both substantial and extensive. The same cannot be said on the relationship between financial development and.   This book is a comprehensive, balanced and realistic assessment of China’s financial reform program and future direction. Covering not only the banking sector but also non-bank financial institutions, stock market development and external financial liberalization, the authors examine the impact of financial reform on economic development in China during Author: James Laurenceson, Joseph C.H. Chai. Capital Account Liberalization, Institutions and Financial Development: Cross Country Evidence. Capital Account Liberalization and Economic Performance: A Review of the Literature,” mimeo Table A-1 Financial Development and Financial Openness Using the “Pseudo-Quinn” Measure Full Sample, Five year panels, Author: Menzie D. Chinn and Hiro Ito. Liberalization, Financial Instability and Economic Development Book Description: Weighing up the costs and benefits of economic interdependence in a finance-driven world, this book argues that globalization has been oversold to the Global South, and that the South should be as selective about globalization as the North.

Financial development is part of the private sector development strategy to stimulate economic growth and reduce poverty. overcoming “costs” incurred in the financial system. This process of reducing costs of acquiring information, enforcing contracts, and executing transactions results in the emergence of financial contracts, intermediaries, and markets. Capital Account Liberalization and Financial Sector Stability. by International Monetary Fund. Occasional Papers (Book ) Share your thoughts Complete your review. Tell readers what you thought by rating and reviewing this book. Rate it * You Rated it *Brand: INTERNATIONAL MONETARY FUND. capital account liberalization is a deci-sion by a country’s government to move from a closed capital account regime, where capital may not move freely in and out of the country, to an open capital account system in which capital can enter and leave at will. Broadly speaking, there are two starkly dif-ferent views about the wisdom of capital. Jeffrey M. Chwieroth, Capital Ideas: The IMF and the Rise of Financial Liberalization. Princeton, NJ: Princeton University Press, ? xvii + pp. $30 (paperback), ISBN: Reviewed for by Joseph M. Santos, Department of Economics, South Dakota State University.?

  14 Diaz-Alejandro, Carlos, “Goodbye Financial Repression, Hello Financial Crash,” Journal of Development Economics 19 (); Fischer, Bernhard and Reisen, Helmut, “Toward Capital Account Convertibility,” OECD Development Centre, Policy Brief 4 (), To opponents of the market-oriented economic program, the collapse and Cited by:   The temporary increase in the growth rate of the real wage permanently drives up the level of average annual compensation for each worker in the sample by US dollars—an increase equal to. Product Information. Capital market liberalization has been a key battle in the debate on globalization for much of the previous two decades. Many developing countries, often at the behest of international financial institutions such as the IMF, opened their capital accounts and liberalized their domesticfinancial markets as part of the wave of liberalization that . country experiences with capital account liberalization. Such an approach would guide China to adopt a carefully sequenced and cautionary approach to capital account liberalization. Capital Account Liberalization in China Regulating the inflow and outflow of capital has been a cornerstone of China’s development reforms.

Capital account liberalization, institutions and financial development by Menzie David Chinn Download PDF EPUB FB2

The results suggest that the rate of financial development, as measured by private credit creation and stock market activity, is linked to the existence of capital controls. However, the strength of this relationship varies with the empirical measure used, and the level of by: "Capital Account Liberalization and the IMF" published on by INTERNATIONAL MONETARY FUND.

capital account liberalization are limited to countries with relatively well-developed financial systems, good accounting standards, strong creditor rights and rule of law. It suggests that countries must reach a certain threshold in terms of institutional and economic developmentFile Size: KB.

Capital Account Liberalization, Institutions and Financial Development: Cross Country Evidence The empirical relationship between capital controls and the financial development of credit and equity markets is examined. We extend the literature on this subject along a number of by: Capital market liberalization has been a key battle in the debate on globalization for much of the previous two decades.

Many developing countries, often at the behest of international financial institutions such as the IMF, opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that characterized the s and.

Specifically, we (1) investigate a substantially broader set of proxy measures of financial development; (2) create and utilize anew index based on the IMF measures of exchange restrictions that incorporates a measure of the intensity of capital controls; and (3) extend the previous literature by systematically examining the implications of institutional (legal) by: Extending the study, Chinn and Ito () focus on the capital account liberalization, legal and institutional development and financial development, especially that in.

Conclusion. Capital account liberalization and financial liberalization more generally are inevitable for countries that wish to take advantage of the substantial benefits from participating in the open world economic system in today's age of modern information. In the s and s, many countries opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that characterized the period.

In the IMF even proposed changing its charter to include a mandate to promote capital market liberalization. Capital Account Liberalization, Institutions and Financial Development: Cross Country Evidence. Menzie Chinn and Hiro Ito (). NoNBER Working Papers from National Bureau of Economic Research, Inc Abstract: The empirical relationship between capital controls and the financial development of credit and equity markets is examined.

We extend the literature on Cited by: Financial sector weaknesses - including inadequate regulation and supervision, implicit deposit insurance, concentrated ownership structures, and poor accounting and disclosure - combined with liberalization of the financial sector and capital accounts, increased vulnerability by creating incentives for risk-taking by financial institutions.

Financial liberalization and the capital account: Thailand, (English) Abstract. The authors examine Thailand's macro-economy and micro-economy for the period to assess the extent to which the country's mix of macroeconomic and financial sector policies contributed to its economic crisis in Cited by: 1 1.

Introduction. A capital account liberalization is a decision by a country’s government to move from a closed capital account regime, where capital may not move freely in and out of the country, to an open capital account system in which capital can enter and leave at will.

where FD is the financial development variable, KALIB is the capital account liberalization variable, and X is a set of control variables, including regional and time dummies. Their measures of financial development include the ratio of liquid liabilities to GDP, theCited by: WP/15/ IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate.

The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Capital Account Liberalization and Inequality. Capital account liberalization, institutions and financial development: cross country evidence Author: Menzie David Chinn ; Hiro Ito ; National Bureau of Economic Research.

Financial sector assessment - a handbook (English) Abstract. The experience of many countries around the world clearly shows that while financial sector development can spur economic growth, financial fragility and instability can seriously harm growth.

Following the financial crises of the late s, there has. We extend our work (Chinn and Ito, ) focusing on the links between capital account liberalization, legal and institutional development, and financial development.

Get this from a library. Capital account liberalization, institutions and financial development: cross country evidence. [Menzie Chinn; Hiro Ito; National Bureau of Economic Research.] -- Abstract: The empirical relationship between capital controls and the financial development of credit and equity markets is examined.

We extend the literature on this subject along a number. Capital market liberalization has been a key battle in the debate on globalization for much of the previous two decades. Many developing countries, often at the behest of international financial institutions such as the IMF, opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that Brand: Joseph E.

Stiglitz. Capital market liberalization has been a key battle in the debate on globalization for much of the previous two decades. Many developing countries, often at the behest of international financial institutions such as the I.M.F., opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that characterized the s and.

This paper analyzes the linkages between capital account liberalization and other policies influencing financial sector stability. Drawing on country experiences, the paper develops an operational framework for sequencing and coordinating capital account liberalization with other policies aimed at maintaining financial sector stability.

Based on the general principles, a. a gradual approach to capital account liberalization, in which the state establishes appropriate procedural and legal infrastructure for prudential regulation and supervision over the financial institutions.

As mentioned in the book, but not elaborated, the development of local expertise in tasks such as credit analysis, risk management.

"What works so well about Capital Ideas is Jeffrey Chwieroth's commitment to understanding historical change and to the very challenging task of getting inside the 'black box' that is the International Monetary Fund.

Chwieroth convincingly knocks down some cherished assumptions about international financial institutions and international organizations more by:   Capital Market Liberalization and Development by Joseph E.

Stiglitz,available at Book Depository with free delivery worldwide/5(4). On the issue of sequencing, trade openness is found to be a prerequisite for successful inducement of financial development via capital account by: Capital Market Liberalization and Development (Initiative for Policy Dialogue) - Kindle edition by Stiglitz, Joseph E., Ocampo, José Antonio.

Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading Capital Market Liberalization and Development (Initiative for Policy Dialogue). As domestic financial development is less important for tradable sectors when a country is open to trade and capital flows, the demand for domestic financial liberalization may be significantly weakened once a country is completely open if the tradable sector is relatively by: While the predominant view is that financial liberalization—i.e., the removal of government intervention in the financial markets—spurs economic development and growth, an alternative analysis is taken against neoliberal policies and financial liberalization (see Eichengreen).

The degree of capital account liberalization in Malaysia and South Korea before and after the crisis were compared. It is difficult to determine whether capital controls or the implementation of an explicit IMF program led to improved economic performance. The factors explaining the reluctance of East Asian economies to liberalize capital account transactions are discussed, Author: Yung Chul Park.

Many developing countries, often at the behest of international financial institutions such as the IMF, opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that characterized the s and s and in doing so exposed their economies to increased risk and volatility.II.

Financial development, financial liberalization and social capital: a literature review Financial development and the pros and cons of financial liberalization Financial development occurs when financial mar-kets or institutions reduce market imperfections, thereby allowing capital to flow to its most produc-tive use (Čihák et al.

).Cited by: 2.This paper reviews the history and controversies associated with capital account management. It first looks at the transition from the acceptance at the Bretton Woods conference of capital account regulations as a normal policy instrument to the liberalization of the capital account, first in developed countries and later in developing countries.

This is followed by an analysis of .