engleski

Capital Account Liberalization, Financial Development and Industry Growth: A Synthetic View

This paper sythesizes pervious studies analyzing the effects of capital account liberalization on industry growth while controlling for financial crises, domestic financial development and the strength of institutions. We find reasonably strong evidence that financial openness has positive effects on the growth of financially-dependent industries, although these growth-enhancing effects evaporate during financial crises. Further analysis indicates that the positive effects of capital account liberlaization 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 development before they can expect to benefit from capital account liberalization.

capital account liberalization; financial development; external dependence

Prvi autor, Barry Eichengreen, sa University of California Berkeley, je prijavljeni strani suradnik na projektu pa nema matični broj znanstvenika.