Cross–country convergence of financial reforms

Jac Heckelman

European Economic Letters, 2013, vol. 2, issue 1, 20-23

Abstract: Financial liberalization indicators are tested for sigma convergence and divergence. Sigma convergence requires a significant reduction in the dispersion across nations over time whereas sigma divergence entails a significant increase in dispersion. Using the standard deviation and a linear trend, sigma divergence is supported for an index of capital accounts openness, but sigma convergence is supported for an index of domestic financial sector liberalization. Using instead the coefficient of variation, which accounts for the upward trend in each of the measures, strong evidence is found in support of sigma convergence for both measures. This latter result holds for both advanced and developing nations.

Keywords: Convergence; Financial liberalization; Standard deviation; Coefficient of variation (search for similar items in EconPapers)
JEL-codes: G15 G28 O16 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eelet.org.uk/EEL2(1)20-23.pdf Full text (application/pdf)

Related works:
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:ris:eueclt:0009

Access Statistics for this article

European Economic Letters is currently edited by Mike Taylor

More articles in European Economic Letters from European Economics Letters Group
Bibliographic data for series maintained by Mike taylor ( this e-mail address is bad, please contact ).