International Financial Liberalization and Industry Growth

Jonas Vlachos and Daniel Waldenström

No 586, Working Paper Series from Research Institute of Industrial Economics

Abstract: The growth effects of international financial liberalization and integration are investigated using the methodology and data developed by Rajan and Zingales (1998). The main result is that industries highly dependent on external financing do not experience higher growth in value added in countries with liberalized financial markets. Liberalization does, however, increase the growth rates of both production and firm creation among externally dependent industries - given that the countries have reached a relatively high level of financial development. These results are consistent both with increased competition and increased outsourcing. Some preliminary evidence point towards the latter explanation.

Keywords: Financial Liberalization; Financial Integration; Economic Growth (search for similar items in EconPapers)
JEL-codes: F30 G10 O40 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2002-11-21
New Economics Papers: this item is included in nep-cfn, nep-com and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.ifn.se/Wfiles/wp/WP586.pdf (application/pdf)

Related works:
Journal Article: International financial liberalization and industry growth (2005)
Working Paper: International Financial Liberalization and Industry Growth (2002)
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:hhs:iuiwop:0586

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().