Working Papers in full text
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
The Quality Effect: Does Financial Liberalization Improve the Allocation of Capital?
|
Author/Editor: |
Abiad, Abdul | Oomes, Nienke | Ueda, Kenichi |
| Authorized for Distribution: |
June 1, 2004 |
|
Electronic Access: |
Free Full Text (PDF file size is 527KB)
Use the free Adobe Acrobat Reader to view this PDF file.
|
|
|
|
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.
|
|
Summary: The study documents evidence of a "quality effect" of financial liberalization on allocative efficiency, which is measured by the dispersion in Tobin's Q across firms. Based on a simple model, the authors predict that financial liberalization, by equalizing access to credit, reduces the variation in expected marginal returns. They test this prediction using a new financial liberalization index and firm-level data for five emerging markets: India, Jordan, Korea, Malaysia, and Thailand. They find strong evidence that financial liberalization, rather than financial deepening, improves allocative efficiency.
|
|
|
|
Order a print copy
|
|
Series: |
Working Paper No. 04/112 |
|
Subject(s): |
Capital | India | Jordan | Korea, Republic of | Malaysia | Thailand | Investment | Credit | Financial systems | Emerging markets | Forecasting models |
|
Author's keyword(s): |
Tobin's Q | financial liberalization | investment | allocative efficiency | inequality |
|
|
|
|
| |
Published: |
|
June 1, 2004 |
|
|
|
|
| |
ISBN/ISSN: |
|
1934-7073 |
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA1122004 |
|
Pages: |
|
34 |
| |
Price: |
|
US$15.00 (Academic Rate: US$15.00 )
|
|
|
|
|
|
|
