Stock Market Liberalizations: Financial and Macroeconomic Implications
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Using a panel of 27 countries, we analyze the effects of stock market liberalization on financial and macroeconomic development. We find that liberalization is associated with a short-term increase in real private investment growth of about 14 percentage points cumulatively in the four years following liberalization and a cumulative 4 percentage point increase in real GDP per capita growth. Growth tends to be higher if institutional reforms precede liberalization. In contrast to other studies, we also find evidence for a permanent growth effect of about 0.4 percent a year in an extended sample of 72 countries.
Series:
Working Paper No. 2001/193
Subject:
Credit ratings Financial markets Financial sector development Market capitalization Money National accounts Private investment Stock markets
English
Publication Date:
December 1, 2001
ISBN/ISSN:
9781451859812/1018-5941
Stock No:
WPIEA1932001
Pages:
40
Please address any questions about this title to publications@imf.org