Contributions

  • National Bureau of Economic Research. - Contributor

Publication

2005 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts

Language

English

Word Count

8,750 words, Guess

Page Count

35 pages

Identifiers

Classifications

  • LCCHB1

Description

"This paper shows that the effect of capital account liberalization on growth depends upon the environment in which that policy occurs. A theoretical model demonstrates the possibility of an inverted-U shaped relationship between the responsiveness of growth to capital account liberalization and institutional quality. Three empirical specifications based on the model are estimated using a panel of 71 countries. Estimates of all three specifications support the hypothesis of a non-monotonic interaction between the responsiveness of growth to capital account liberalization and institutional quality, with about one-quarter of the countries, those with better (but not the best) institutions exhibiting a statistically significant and economically meaningful effect of capital account openness on economic growth"--National Bureau of Economic Research web site.

Description

"This paper shows that the effect of capital account liberalization on growth depends upon the environment in which that policy occurs. A theoretical model demonstrates the possibility of an inverted-U shaped relationship between the responsiveness of growth to capital account liberalization and institutional quality. Three empirical specifications based on the model are estimated using a panel of 71 countries. Estimates of all three specifications support the hypothesis of a non-monotonic interaction between the responsiveness of growth to capital account liberalization and institutional quality, with about one-quarter of the countries, those with better (but not the best) institutions exhibiting a statistically significant and economically meaningful effect of capital account openness on economic growth"--National Bureau of Economic Research web site.

Subjects

Series Statement

  • NBER working paper series -- no. 11112.
  • Working paper series (National Bureau of Economic Research) -- working paper no. 11112.

Links

Other Editions

  • Capital account liberalization, institutional quality and economic growth: theory and evidenceNational Bureau of Economic Research2005-01-01

Reader Reviews

No reviews yet for this book.

Be the first to share your thoughts!