WELFARE GAINS FROM FINANCIAL LIBERALIZATION

• 成果类型: Article
• 署名作者: Townsend, Robert M.; Ueda, Kenichi
• 署名单位: International Monetary Fund; Massachusetts Institute of Technology (MIT)
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2010.00593.x
• 发表日期: 2010
• 页码: 553-597
• 关键词: growth; intermediation; RISK; diversification; REFORM; MODEL; cost

摘要

Financial liberalization has been a controversial issue, as empirical evidence for growth enhancing effects is mixed. Here, we find sizable welfare gains from liberalization (cost to repression), although the gain in economic growth is ambiguous. We take the view that financial liberalization is a government policy that alters the path of financial deepening, whereas financial deepening is endogenously chosen by agents given a policy and occurs in transition toward a distant steady state. This history-dependent view necessitates the use of simulation analysis based on a growth model. Our application is a specific episode: Thailand from 1976 to 1996.