Growth and risk at the industry level: The real effects of financial liberalization

• 成果类型: Article; Proceedings Paper
• 署名作者: Levchenko, Andrei A.; Ranciere, Romain; Thoenig, Mathias
• 署名单位: University of Michigan System; University of Michigan; University of Geneva
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2008.06.003
• 发表日期: 2009
• 页码: 210-222
• 关键词: financial liberalization; GROWTH; volatility; Industry-level data; Difference-in-differences estimation; Propensity score matching

摘要

This paper analyzes the effects of financial liberalization on growth and volatility at the industry level in a large sample of countries. We estimate the impact of liberalization on production, employment, firm entry, capital accumulation, and productivity. In order to overcome omitted variables concerns, we employ a number of alternative difference-in-differences estimation strategies. We implement a propensity score matching algorithm to find a control group for each liberalizing country. In addition, we exploit variation in industry characteristics to obtain an alternative set of difference-in-differences estimates. Financial liberalization is found to have a positive effect on both growth and volatility of production across industries. The positive growth effect comes from increased entry of firms, higher capital accumulation, and an expansion in total employment. By contrast, we do not detect any effect of financial liberalization on measured productivity. Finally, the growth effects of liberalization appear temporary rather than permanent. (C) 2008 Elsevier B.V. All rights reserved.