â â â  â â â â â â â â â â â  financial sector is one of the most influential sectors in economic activities. empirical and theoretical studies conducted in recent years have also confirmed the significant role of financial institutions in economic growth. additionally, trade and financial liberalization policies have been particular concerned with strategic policies in developed and developing...

Financial sector is one of the most influential sectors in economic activities. Empirical and theoretical studies conducted in recent years have also confirmed the significant role of financial institutions in economic growth. Additionally, trade and financial liberalization policies have been particular concerned with strategic policies in developed and developing countries. According to dynam...

Financial liberalization has led to financial deepening and higher growth in several countries. However, it has also led to a greater incidence of financial crises. Here, we review the empirical evidence on these dual effects of financial liberalization across different groups of countries. We then present a conceptual framework that explains why there is a trade-off between growth and incidenc...

This paper investigates how financial, trade, institutional and political liberalization policies have affected financial efficiency in Africa. It uses updated data to appraise second generation reforms in order to gather fresh evidence and derive more updated policy implications. The ‘freedom to trade’ and ‘economic freedom’ indices are also employed. The following findings are established. (1...

This paper quantifies the welfare impact of a permanent increase in the level of per capita income brought about by a temporary growth effect following financial liberalization. We find that a lion’s share of the welfare benefits from financial liberalization accrue over relatively short horizons, and in the early years after the policy is implemented. Evaluating welfare gains from liberalizati...

Using data from publicly traded South Korean corporations for the period 1980-94, this paper finds evidence that increases in financial liberalization that accompanied the more general process of financial globalization have significantly reduced the maturity structure of corporate debt contracts, thus lending partial empirical support to the idea that financial liberalization can be well descr...

the purpose of this paper is to evaluate the effect of financial liberalization on exchange rate volatilities of the selected developing countries, which are now known as liberalizing countries. thus we test the hypothesis in which financial liberalization effect exchange rate volatilities in 43 selected developing countries during 1996-2005. accordingly, a regression model of exchange rate vol...

Financial liberalization has been a controversial issue, as empirical evidence for growth enhancing effects is mixed. Here, we find sizable welfare gains from liberalization (cost to repression), though the gain in economic growth is ambiguous. We take the view that financial liberalization is a government policy that alters the path of financial deepening, while financial deepening is endogeno...

The majority of OECD countries has experienced a reduction in the volatility of output during the last two decades. This period is also characterized by the liberalization of the capital accounts of these countries. This paper examines whether capital markets liberalization can lead to lower macroeconomic volatility. We study a business cycle model with multiple countries and financial market f...

In this paper we empirically examine the effect of various banking policies on financial sector development. To this end, an econometric model in the context of Co-integrated VAR is employed. The results show that financial liberalization and reforms have a significant and positive effect on the banking sector development while inflation rate has a negative effect. Furthermore, the high GDP...