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Decomposing the Effects of Financial Liberalization: Crises vs. Growth

Romain Ranciere (), Aaron Tornell () and Frank Westermann
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Aaron Tornell: UCLA

No 74, IEER Working Papers from Institute of Empirical Economic Research, Osnabrueck University

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: F34 F36 F43 O41 (search for similar items in EconPapers)
Pages: 21
Date: 2006-05-08
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Related works:
Journal Article: Decomposing the effects of financial liberalization: Crises vs. growth (2006) Downloads
Working Paper: Decomposing the Effects of Financial Liberalization: Crises vs. Growth (2006) Downloads
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