The quality effect: Does financial liberalization improve the allocation of capital?

• 成果类型: Article
• 署名作者: Abiad, Abdul; Oomes, Nienke; Ueda, Kenichi
• 署名单位: International Monetary Fund
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2007.12.002
• 发表日期: 2008
• 页码: 270-282
• 关键词: Tobin's Q; financial liberalization; INVESTMENT; Allocative efficiency

摘要

We document evidence of a quality effect of financial liberalization on allocative efficiency, as measured by dispersion in Tobin's Q across firms. We predict that financial liberalization, by equalizing access to credit, is associated with reduced variation in expected marginal returns. We test this prediction using a new financial liberalization index and firm-level data for five emerging markets: India, Jordan, Korea, Malaysia, and Thailand. We find robust evidence that financial liberalization, rather than Financial deepening, is associated with improved allocative efficiency.