Abstract : We present a new empirical decomposition of the effects of financial liberalization on economic growth and on the incidence of crises. Our empirical estimates show that the direct effect of financial liberalization on growth by far outweighs the indirect effect via a higher propensity to crisis. We also discuss several models of financial liberalization and growth whose predictions are consistent with our empirical findings.
https://hal-pjse.archives-ouvertes.fr/halshs-00754116
Contributor : Caroline Bauer
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Submitted on : Tuesday, November 20, 2012 - 8:43:55 AM
Last modification on : Friday, June 28, 2019 - 3:01:14 PM
Romain Rancière, Aaron Tornell, Frank Westermann. Decomposing the Effects of Finncial Liberalization: Growth vs. Crises. Journal of Banking and Finance, Elsevier, 2006, 30 (12), pp.3331-3348. ⟨10.1016/j.jbankfin.2006.05.019⟩. ⟨halshs-00754116⟩
