EconPapers    
Economics at your fingertips  
 

Capital account liberalization, financial depth, and economic growth

Michael Klein () and Giovanni Olivei

No 99-6, Working Papers from Federal Reserve Bank of Boston

Abstract: We show a statistically significant and economically relevant effect of open capital accounts on financial deepness and economic growth in a cross-section of countries over the period 1986 to 1995. Countries with open capital accounts over some or all of this period had a significantly greater increase in financial depth than countries with continuing capital account restrictions, and they also enjoyed greater economic growth. These results, however, are largely driven by the developed countries included in the sample. The observed failure of capital account liberalization to promote financial deepness among developing countries suggests potentially important policy implications concerning the desirability of opening up the capital account.

Keywords: Capital market; Capital movements; Finance (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 1999
References: View complete reference list from CitEc
Citations: View citations in EconPapers (75) Track citations by RSS feed

Downloads: (external link)
http://www.bostonfed.org/economic/wp/wp1999/wp99_6.htm (text/html)
http://www.bostonfed.org/economic/wp/wp1999/wp99_6.pdf (application/pdf)

Related works:
Working Paper: Capital Account Liberalization, Financial Depth and Economic Growth (1999) Downloads
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:fip:fedbwp:99-6

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().

 
Page updated 2019-12-02
Handle: RePEc:fip:fedbwp:99-6