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for 91 countries from 1973 to 2005 to test Rajan and Zingales's (2003) interest group theory of financial development. In … line with the theory, we find strong evidence that trade liberalization is a leading indicator of domestic financial …SLS, system GMM) and a check for non-linear effects. However, in contrast to the theory, we do not find consistent …
Persistent link: https://www.econbiz.de/10013075454
This paper studies the endogenous determination of financial openness. We outline a framework where financial openness is endogenously determined by the authority's choice of financial repression as a taxation device, and where the private sector determines endogenously the magnitude of capital...
Persistent link: https://www.econbiz.de/10013212376
This paper studies the endogenous determination of financial openness. We outline a framework where financial openness is endogenously determined by the authority's choice of financial repression as a taxation device, and where the private sector determines endogenously the magnitude of capital...
Persistent link: https://www.econbiz.de/10012468550
We present a two-country OLG economy in which international capital mobility exists in the presence of moral hazard in financial contracts. The difference in the extent of asymmetric information is a source of capital movement and capital flows from the South to the North. Even though there...
Persistent link: https://www.econbiz.de/10014072129
This paper builds a multiperiod, general equilibrium framework for analyzing the macroeconomic effects of financial reforms in developing countries and the costs of maintaining official safety nets under the financial system during such reforms. While a financial liberalization yields efficiency...
Persistent link: https://www.econbiz.de/10014398266
This paper analyzes issues for developing countries considering a move to capital account convertibility. It reviews the relevant literature, including arguments for sequencing, and analyses in a series of charts various features of the foreign exchange market impact of removing controls, as...
Persistent link: https://www.econbiz.de/10014396047