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Author/Editor:
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Townsend, Robert M. ; Ueda, Kenichi
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Publication Date:
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July 01, 2007
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Electronic Access:
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Free Full text
(PDF file size is 396KB).
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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Summary:
Financial liberalization has been a controversial issue as there is little empirical evidence for its positive effects on economic growth. However, we find sizable welfare gains, 1 to 28 percent of permanent consumption though, consistent with the literature, the gain in the economic growth is ambiguous, -0.2 to 0.7 percent. We apply a canonical growth model with endogenous financial deepening to Thailand, 1976-96. As effective bank transaction costs decline, more people take advantage of financial services. We estimate the gains by comparing model simulations under the historical episode of financial liberalization to those under a hypothetical continuation of financial repression.
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Order a print copy
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Series:
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Working Paper No. 07/154
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Subject(s):
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Financial sector | Financial systems | Economic growth | Economic models | Thailand
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Author's Keyword(s):
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Financial liberalization | welfare gain | financial deepening | economic growth |
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English
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Publication Date:
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July 01, 2007
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ISBN/ISSN:
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1934-7073
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Format:
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Paper
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Stock No:
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WPIEA2007154
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Pages:
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40
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Price:
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US$18.00 )
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Please address any questions about this title to
publications@imf.org
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