Capital account liberalization, institutional quality, and economic growth
Subtitle: theory and evidence
By: Michael W. Klein.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11112; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11112.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Capital movements -- Mathematical models.; Fiscal policy -- Mathematical models.; Economic development -- Mathematical models.
Description: "This paper shows that the effect of capital account liberalization on growth depends upon the environment in which that policy occurs.  A theoretical model demonstrates the possibility of an inverted-U shaped relationship between the responsiveness of growth to capital account liberalization and institutional quality.  Three empirical specifications based on the model are estimated using a panel of 71 countries.  Estimates of all three specifications support the hypothesis of a non-monotonic interaction between the responsiveness of growth to capital account liberalization and institutional quality, with about one-quarter of the countries, those with better (but not the best) institutions exhibiting a statistically significant and economically meaningful effect of capital account openness on economic growth"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 2/15/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.