Does Capital Account Liberalization Lead to Growth?

Quinn, Dennis P.; Toyoda, A. Maria

doi:10.1093/rfs/hhn034

Cited by 424 publications

(289 citation statements)

References 86 publications

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“…They do not always reflect the actual degree of financial integration of an economy into international capital markets, as other regulations that restrict capital are not considered as such. In addition, these measures do not capture the degree of enforcement of capital controls (Quinn and Toyoda 2008;Quinn, Schindler, and Toyoda 2011;Kose et al 2009). …”

Section: A Financial Development and Economic Growthmentioning

confidence: 99%

Financial Development, Financial Openness, and Economic Growth

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The views expressed in this paper are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. Terms of use: Documents inADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.By making any designation of or reference to a particular territory or geographic area, or by using the term "country" in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. Note: In this publication, "$" refers to US dollars.The ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.

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Section: A Financial Development and Economic Growthmentioning

confidence: 99%

Financial Development, Financial Openness, and Economic Growth

2015

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“…For example, Bekaert, Harvey, and Lundblad (2005) and Quinn and Toyoda (2008) document strong growth effects. However, Rodrik (1998) and Edison et al (2002) find weak effects and a survey paper by Prasad, Rogoff, Wei, and Kose (2009) calls the collective evidence "mixed."…”

Section: Introductionmentioning

confidence: 99%

Financial Openness and Productivity

2011

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Summary. -Financial openness is often associated with higher rates of economic growth. We show that the impact of openness on factor productivity growth is more important than the effect on capital growth. This explains why the growth effects of liberalization appear to be largely permanent, not temporary. We attribute these permanent liberalization effects to the role financial openness plays in stock market and banking sector development, and to changes in the quality of institutions. We find some indirect evidence of higher investment efficiency post-liberalization. We also document threshold effects: countries that are more financially developed or have higher quality of institutions experience larger productivity growth responses. Finally, we show that the growth boost from openness outweighs the detrimental loss in growth from global or regional banking crises.

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“…Quinn & Inclan (1997) and Quinn & Toyoda (2008) find a strong association between capital account liberalization and growth, while Rodrik (1998) does not. Edwards (2001) argues that capital account openness affects developing and developed countries differently.…”

Section: Systemic Risk and The Prudential Regulation Of Banksmentioning

confidence: 99%