On the Growth Effects of Financial Liberalization.
Abstract: Over the past few decades, a wave of financial liberalization has
occurred throughout the world. This thesis studies the growth effects of financial
liberalization reforms on economic growth. I use a new comprehensive database of financial
reform, and conduct regression analysis with both country-level and industry-level data. At
the country-level, I employ the OLS fixed effect models ... read moreand GMM panel techniques, and find
that liberalization has a positive and significant impact on the long run economic growth
rates. At the industry-level, liberalization also contributes positively to the growth of
real value-added and the level of investment in manufacturing industries. Further
disaggregation of the growth effects reveals that it is more prominent in industries that
have a higher level of external capital dependence and a higher R&D intensity. The
findings confirm the hypotheses that liberalization reduces information barriers and
transaction costs in the financial system.
Thesis (M.S.)--Tufts University, 2013.
Submitted to the Dept. of Economics.
Advisor: Sahar Parsa.
Committee: Marcelo Bianconi.
Keyword: Economics.read less