Does Financial Liberalization Spur Growth?

Bekaert, Geert; Harvey, Campbell R.; Lundblad, Christian

doi:10.2139/ssrn.264818

Cited by 265 publications

(251 citation statements)

References 77 publications

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“…During the sample period, economic growth appears to have been positively affected by high-quality (international) accounting standards and accounting regulation (Bekaert et al 2005). Although stock market development has a significant positive effect on growth, the interaction of accounting regulation with stock market development appears to have a negative effect on growth, suggesting that high-quality accounting standards reduce managers' ability to signal private information to investors or fails to fit as well with the local environment as domestic accounting standards.…”

Section: Results Of Empirical Analysismentioning

confidence: 97%

“…Bekaert et al (2005) provided evidence that countries with better shareholder rights or accounting standards achieve higher economic growth. Moreover, they remarked that accounting standards rated higher than average contribute more to growth than below average standards.…”

Section: Stock Market-based Financial Development and Growthmentioning

confidence: 99%

“…Some prior studies have examined the impact of accounting on economic growth using disclosure quality, accounting information adequacy, or accounting standards (e.g., Bekaert et al 2005;La Porta et al 1998;Larson and York-Kenny 1995;Levine et al 2000;Rajan and Zingales 1998;Riahi-Belkaoui 2002). 3 However, to the best of my knowledge, there is no study that examines the effect of accounting regulation on economic growth through its impact on financial development.…”

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confidence: 99%

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Accounting Regulation, Financial Development, and Economic Growth

Akisik

2013

Emerging Markets Finance and Trade

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This paper examines the relationship between accounting regulation, financial development, and economic growth in fifty-one developed and emerging market economies over the period 1997-2009. Accounting regulation has been the center of long-lasting debates in the accounting profession. The debates came to the forefront after several spectacular financial reporting frauds and scandals in the early 2000s damaged public confidence in capital markets. Using generalized method of moments estimation techniques, this study provides evidence that accounting regulation has a strong effect on economic growth even after controlling for a number of macroeconomic and socioeconomic variables.

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Section: Results Of Empirical Analysismentioning

confidence: 97%

Section: Stock Market-based Financial Development and Growthmentioning

confidence: 99%

mentioning

confidence: 99%

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Accounting Regulation, Financial Development, and Economic Growth

Akisik

2013

Emerging Markets Finance and Trade

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“…There are also conflicting views. Some stress positive effects on growth rates (e.g., Bekaert et al 2005), and others stress negative effects, raising the probability of crisis (e.g., Stiglitz 2000). Kaminsky & Schmukler (2003) show that both views can coexist: Liberalization may create crisis in the short run but may be beneficial for long-run growth (see also Tornell & Westermann 2005).…”

Section: Modeling With Imperfect Markets and An Extensive Marginmentioning

confidence: 99%

Financial Structure and Economic Welfare: Applied General Equilibrium Development Economics

Townsend

2010

Annu. Rev. Econ.

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This review provides a common framework for researchers thinking about the next generation of micro-founded macro models of growth, inequality, and financial deepening, as well as direction for policy makers targeting microfinance programs to alleviate poverty. Topics include treatment of financial structure general equilibrium models: testing for as-if-complete markets or other financial underpinnings; examining dual-sector models with both a perfectly intermediated sector and a sector in financial autarky, as well as a second generation of these models that embeds information problems and other obstacles to trade; designing surveys to capture measures of income, investment/savings, and flow of funds; and aggregating individuals and households to the level of network, village, or national economy. The review concludes with new directions that overcome conceptual and computational limitations.

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“…Now let us try to find answers to these questions. Bekeart et al (2005) provide the most extensive dataset on financial liberalization dates. They pin down the date as that of the first American Depository Receipt issuance.…”

Section: Boom-bust Cycles Behind Disorderly Exits?mentioning

confidence: 99%

Parametric and non‐parametric approaches to exits from fixed exchange rate regimes

Aşıcı¹

2009

Int. J Fin Econ

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Following the demise of the Bretton-Woods, increasing number of countries has been opting for flexible exchange rate regimes. Exiting from fixed regimes however is not without costs. Regime transitions have often been occurred in the midst of a crisis, which has considerable economic costs in terms of output contraction and exchange rate depreciation. Given the big number of countries having still fixed regimes and financial markets that are fairly close and expected to be liberalized sooner or later, issue of exiting a peg without incurring crisis is a real challenge confronting these countries. The aim of this paper is to determine the conditions under which orderly exit is possible. The paper employs Binary Recursive Tree and standard regression frameworks. Analysis shows that countries with higher output gap and overvalued real exchange rate, among others, are doomed to exit in a disorderly way. Following their exit, output collapses and exchange rate depreciates considerably. The ill-managed financial liberalization and macroeconomic stabilization programs seem to lay the seeds of instability. An interesting finding is that the conventional strengths of parametric regression analysis can be dramatically improved by utilizing findings of non-parametric BRT technology. Sample contains all countries depending on the data availability, and covers 1975-2004 period. Copyright © 2009 John Wiley & Sons, Ltd.

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Does Financial Liberalization Spur Growth?

Cited by 265 publications

References 77 publications

Accounting Regulation, Financial Development, and Economic Growth

Accounting Regulation, Financial Development, and Economic Growth

Financial Structure and Economic Welfare: Applied General Equilibrium Development Economics

Parametric and non‐parametric approaches to exits from fixed exchange rate regimes

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