Decomposing the Effects of Financial Liberalization: Crises vs. Growth

Romain Ranciere, Aaron Tornell and Frank Westermann

No 12806, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a new empirical decomposition of the effects of financial liberalization on economic growth and on the incidence of crises. Our empirical estimates show that the direct effect of financial liberalization on growth by far outweighs the indirect effect via a higher propensity to crisis. We also discuss several models of financial liberalization and growth whose predictions are consistent with our empirical findings.

JEL-codes: F3 F32 F33 F36 F43 O4 (search for similar items in EconPapers)
Date: 2006-12
New Economics Papers: this item is included in nep-dev and nep-fdg
Note: IFM EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (136)

Published as Ranciere, Romain & Tornell, Aaron & Westermann, Frank, 2006. "Decomposing the effects of financial liberalization: Crises vs. growth," Journal of Banking & Finance, Elsevier, vol. 30(12), pages 3331-3348, December.

Downloads: (external link)
http://www.nber.org/papers/w12806.pdf (application/pdf)

Related works:
Journal Article: Decomposing the effects of financial liberalization: Crises vs. growth (2006)
Working Paper: Decomposing the Effects of Financial Liberalization: Crises vs. Growth (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:12806

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w12806

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().