What matters for financial development? Capital controls, institutions, and interactions

• 成果类型: Article
• 署名作者: Chinn, Menzie D.; Ito, Hiro
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; National Bureau of Economic Research; Portland State University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2005.05.010
• 发表日期: 2006
• 页码: 163-192
• 关键词: financial development; capital controls; financial liberalization; legal institutions; sequence of liberalization

摘要

We investigate whether financial openness leads to financial development after controlling for the level of legal development using a panel encompassing 108 countries over the period 1980 to 2000. We also examine the issue of the optimal sequence of liberalization in both goods and financial markets. Our findings suggest that a higher level of financial openness spurs equity market development only if a threshold level of legal development has been attained. On the issue of sequencing, we find that trade openness is a prerequisite for capital account liberalization while banking system development is a precondition for equity market development. (c) 2005 Elsevier B.V. All rights reserved.