Academic
Publications
Financial Openness and Productivity

Financial Openness and Productivity,10.1016/j.worlddev.2010.06.016,World Development,Christian Lundblad,Campbell R. Harvey

Financial Openness and Productivity   (Citations: 6)
BibTex | RIS | RefWorks Download
Summary Financial openness is often associated with higher rates of economic growth. We show that the impact of openness on factor productivity growth is more important than the effect on capital growth. This explains why the growth effects of liberalization appear to be largely permanent, not temporary. We attribute these permanent liberalization effects to the role financial openness plays in stock market and banking sector development, and to changes in the quality of institutions. We find some indirect evidence of higher investment efficiency post-liberalization. We also document threshold effects: countries that are more financially developed or have higher quality of institutions experience larger productivity growth responses. Finally, we show that the growth boost from openness outweighs the detrimental loss in growth from global or regional banking crises.
Journal: World Development - WORLD DEVELOP , vol. 39, no. 1, pp. 1-19, 2011
Cumulative Annual
View Publication
The following links allow you to view full publications. These links are maintained by other sources not affiliated with Microsoft Academic Search.
Sort by: