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 -- no. 11112.; Working paper series (National Bureau of Economic Research) -- working paper no. 11112.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 35
Subjects: Capital -- Accounting; Fiscal policy
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: "February 2005."

Includes bibliographical references (p. 31).

Also available in PDF from the NBER world wide web site (www.nber.org).