Experimental study of the effects of financial liberalization on growth and developed a group of developing countries (with an emphasis on Iran)

Subject Areas : Financial Economics

رویا Seifi por ¹

1 - استادیار دانشگاه آزاد اسلامی واحد تهران مرکزی

Received: 2015-05-11 Accepted : 2015-05-11 Published : 2012-09-22

Keywords:

Abstract :

In the past, theories of economic growth were believed thatreal resources such as land and capital growth were the main constraints and would be ignored the role of financial markets. But new theories are emphasized on the importance of freedom of the financial sector and the importance of financial sector in the development process. Proponents of market economy are believed that flourishing competitive markets, privatization of public enterprises, free trade, attracting foreign capital and elimination government waste regulations enhance efficiency and growth will be provided. So the aim of the present study is analysis the effects of financial liberalization on economic growth. For this purpose, data 37 countries has been used that include 23 countries with low and middle incomes and 14 high-income countries in the period 2008-1980. The results are showed that long-term effect of capital market liberalization on growth in low and middle income countries is negative and in high-income countries is positive. However, the effect of capital inflows on the high and low and middle income countries is positive.

References:

 

1. ادیبی خو، کامران؛ " اثرات آزادسازی بازار مالی بر بازار سرمایه ایران" ؛ دانشکده اقتصاد دانشگاه تهران؛ 1382.


2. راستی، محمد؛" بررسی رابطه توسعه مالی و رشد اقتصادی در ایران" ؛ دانشکده اقتصاد دانشگاه تهران؛ 1378.


3. گاتاک، سابراتا؛" اقتصاد پول در کشورهای در حال توسعه"؛ مترجم: علی حسین صمدی ؛موسسه تحقیقات پولی و بانکی پژوهشکده بانک مرکزی جمهوری اسلامی ایران؛1377.


4. احسانی،محمد علی؛"واسطه های مالی و رشد اقتصادی در ایران " ؛ موسسه تحقیقات پولی و بانکی پژوهشکده بانک مرکزی جمهوری اسلامی ایران؛1383


5. Ranciere, Romain, Tornell, Aaron, and Westermann, Frank; “Decomposing the effects of financial liberalization : Crises VS. Growth“; Journal of Banking and Finance ; No.30 ; 2006 ; pp.3331-3348.


6. Bekaert, Greet, R.Harvey, Campbell, and Lundblad, Christian; “ Growth volatality and financial liberalization “ ; Journal of International Money and Finance; No.25; 2006 ; pp.370-403.


7. Siddiki, Jalal Uddin, Aurebach, Paul ; “ Financial Liberalization and Economic Development: An Assessment “ ; Journal of Economic Surveys Vol. 18 ; No. 3; 2006 ; pp.231-265.


8. Ranciere, Romain, Tornell, Aaron, and Westermann, Frank ; “ Systemic Crises and Growth “ ; NBER Working Paper 11076; January 2005.


9. Aizenman , Jashua; “ Financial Liberalization in Latin America in the 1990s: A reassessment “ ; NBER Working Paper 11145; February 2005.


10. Bekaert , Geert , Harvey , Campbell R. , Lundblad , Christian ; “ Liquidity and Expected Returnes : Lessons Emerging Markets “ ; NBER Working Paper 11413 ; 2005.


11. Tornell, Aaron, Westermann, Frank, and Martinez, Lorenza; “ The positive link between financial liberalization growth and crises “ ; NBER Working Paper 10293; February 2004.


12. Bird, Graham, Nyawata, Obert; “ Financial Liberalization in Southern Africa: An Assessment” ; Development Policy Review; No.22(3); 2004; pp.287-307.


13. Edwards,S. ; “ Thirty Years of Current Account Imbalances” ; IMF Staff Papers : 51:1-47; 2004.


14. Aizenman , Jashua , Pinto , Brian , Radziwill , Arthur ; “ Sources For Financing Domestic Capital- Is Foreign Saving A Viable Option For Developing Countries? “ ; NBER Working Paper 10624 ; 2004.


15. Ranciere, Romain, Tornell, Aaron, and Westermann, Frank;  “ Crises and Growth : A re-evaluation “ ; NBER Working Paper 10073; October 2003.


16. King, R.G. , Levine, R.; “ Financial Entrepreneurship and Growth: Theory and Evidence “ ; Journal Of Monetary Economics; No.35; 1993; pp. 513-542.


17. Pagano, M.; “ Financial Markets and Growth: An Overview” ; European Economic Review; No. 37; 1993; pp. 613-622.


18. King, R.G. , Levine, R.; “ Financial Entrepreneurship and Growth: Theory and Evidence “ ; Journal Of Monetary Economics; No.35; 1993; pp. 513-542


19. Villanueva, Delano, Mirakhor, Abbas; “ Strategies For Financial Reforms “; IMF Staff Papers Vol.37; No.3; 1990.


20. Greenwood, J., Jovanovich, B.; “ Financial Development, Growth, and The Destribution Of Income” ; Journal Of Political Economy 98(5); 1990; pp. 1076-1107


21. Fry, M.J.; “ Saving, Investment, Growth and The Cost Of Financial Repression” ; World Development Vol.8; 1986; pp. 317-327.


22. Taylor, L.; “ Structuralist Macroeconomics: Applicable Models In The Third World”; New York: Basic Books; 1983.

Van Wijnburgen, S.; “ Interest Rate Management In LCDs “ ; Journal Of Monetary Economics “; No.12; 1983; pp. 433-452.