Assessing Measures of Financial Openness and Integration

Dennis Quinn, Martin Schindler and A Maria Toyoda

IMF Economic Review, 2011, vol. 59, issue 3, 488-522

Abstract: Researchers have available to them numerous indicators of financial openness and integration, many of which have yielded substantially differing results in past research, for example, on the relationship of financial openness or integration with economic growth. This article reviews the main indicators and finds that de jure vs. de facto indicators yield systematically different growth results. Among de jure indicators, sample differences account for much of the variation in growth results, with a weaker impact found in more recent data and among advanced economies. It also finds that many indicators capture different and useful facets of financial openness, such as intensive vs. extensive measures, and de facto vs. de jure. A small minority of indices suffer weaknesses that make them not useful for rigorous economic analysis, most notably the Investment Freedom Index by the Heritage Foundation.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (161)

Downloads: (external link)
http://www.palgrave-journals.com/imfer/journal/v59/n3/pdf/imfer201118a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfer/journal/v59/n3/full/imfer201118a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:imfecr:v:59:y:2011:i:3:p:488-522

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().