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Author: Robert Townsend Publisher: World Bank Publications ISBN: Category : Financial institutions Languages : en Pages : 52
Book Description
The objective of this paper is to assess both the aggregate growth effects and the distributional consequences of financial liberalization as observed in Thailand from 1976 to 1996. A general equilibrium occupational choice model with two sectors, one without intermediation, and the other with borrowing and lending, is taken to Thai data. Key parameters of the production technology and the distribution of entrepreneurial talent are estimated by maximizing the likelihood of transition into business given initial wealth as observed in two distinct datasets. Other parameters of the model are calibrated to try to match the two decades of growth as well as observed changes in inequality, labor share, savings, and the number of entrepreneurs. Without an expansion in the size of the intermediated sector, Thailand would have evolved very differently, namely, with a drastically lower growth rate, high residual subsistence sector, non-increasing wages, but lower inequality. The financial liberalization brings welfare gains and losses to different subsets of the population. Primary winners are talented would-be entrepreneurs who lack credit and cannot otherwise go into business (or invest little capital). Mean gains for these winners range from 17 to 34 percent of observed overall average household income. But liberalization also induces greater demand by entrepreneurs for workers resulting in increases in the wage and lower profits of relatively rich entrepreneurs of the same order of magnitude as the observed overall average income of firm owners. Foreign capital has no significant impact on growth or the distribution of observed income. This paper--a product of Finance, Development Research Group--is part of a larger effort in the group to understand financial liberalization and its impact on growth.
Author: Robert Townsend Publisher: World Bank Publications ISBN: Category : Financial institutions Languages : en Pages : 52
Book Description
The objective of this paper is to assess both the aggregate growth effects and the distributional consequences of financial liberalization as observed in Thailand from 1976 to 1996. A general equilibrium occupational choice model with two sectors, one without intermediation, and the other with borrowing and lending, is taken to Thai data. Key parameters of the production technology and the distribution of entrepreneurial talent are estimated by maximizing the likelihood of transition into business given initial wealth as observed in two distinct datasets. Other parameters of the model are calibrated to try to match the two decades of growth as well as observed changes in inequality, labor share, savings, and the number of entrepreneurs. Without an expansion in the size of the intermediated sector, Thailand would have evolved very differently, namely, with a drastically lower growth rate, high residual subsistence sector, non-increasing wages, but lower inequality. The financial liberalization brings welfare gains and losses to different subsets of the population. Primary winners are talented would-be entrepreneurs who lack credit and cannot otherwise go into business (or invest little capital). Mean gains for these winners range from 17 to 34 percent of observed overall average household income. But liberalization also induces greater demand by entrepreneurs for workers resulting in increases in the wage and lower profits of relatively rich entrepreneurs of the same order of magnitude as the observed overall average income of firm owners. Foreign capital has no significant impact on growth or the distribution of observed income. This paper--a product of Finance, Development Research Group--is part of a larger effort in the group to understand financial liberalization and its impact on growth.
Author: Xavier Giné Publisher: ISBN: Category : Languages : en Pages : 48
Book Description
The objective of this paper is to assess both the aggregate growth effects and the distributional consequences of financial liberalization as observed in Thailand from 1976 to 1996. A general equilibrium occupational choice model with two sectors, one without intermediation, and the other with borrowing and lending, is taken to Thai data. Key parameters of the production technology and the distribution of entrepreneurial talent are estimated by maximizing the likelihood of transition into business given initial wealth as observed in two distinct datasets. Other parameters of the model are calibrated to try to match the two decades of growth as well as observed changes in inequality, labor share, savings, and the number of entrepreneurs. Without an expansion in the size of the intermediated sector, Thailand would have evolved very differently, namely, with a drastically lower growth rate, high residual subsistence sector, non-increasing wages, but lower inequality. The financial liberalization brings welfare gains and losses to different subsets of the population. Primary winners are talented would-be entrepreneurs who lack credit and cannot otherwise go into business (or invest little capital). Mean gains for these winners range from 17 to 34 percent of observed overall average household income. But liberalization also induces greater demand by entrepreneurs for workers resulting in increases in the wage and lower profits of relatively rich entrepreneurs of the same order of magnitude as the observed overall average income of firm owners. Foreign capital has no significant impact on growth or the distribution of observed income.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to understand financial liberalization and its impact on growth.
Author: Güven Sak Publisher: ISBN: Category : Ekonomik istikrar- Türkiye Languages : en Pages : 170
Book Description
TABLE OF CONTENTS ABSTRACT IV ÖZ V ACKNOWLEDGEMENTS VI LIST OF TABLES VII CHAPTERI: INTRODUCTION 1 PART I FROM FINANCIAL REPRESSION TO FINANCIAL LIBERALIZATION: THEORETICAL AND RESEARCH ISSUES CHAPTER II: ECONOMIC DEVELOPMENT AND THE FINANCIAL HISTORICAL BACKGROUND OF THE POLICY DEBATE 7 2.1 Introduction 7 2.2 Growth-Oriented Analysis: The Role of Finance in Economic Development 9 2.3 Financial Repression Analysis and thc Neoclassical Paradigm: The Policy Framcwork in Financial Markets 11 2.4 On the Impossibiiity of Perfect Financial Markets 15 2.5 New Agcnda of Research 20 2.6 Roles for Government in the Financial Liberalization Process 22 2.7 Policy Framcwork in Developing Market Economies 24 2.8 Concluding Comments 25 CHAPTER III: MARKET ORIENTED POLİCY TRENDS: FINANCIAL LIBERALIZATION İN A CHANGING WORLD 29 3.1 Introduction 29 3.2 Impact of Technology on Changes in Financial Markets 29 3.3 Impact of Past Experiencc and Rcgulatory Pressures for Financial Change 30 3.4 Increasing Uncertainty of the Economic Environment and Financial Change Process 31 3.5 Increased Compctition and Financial Change 32 3.6 Financial Change in Developing Market Economies 33 3.7Concluding Comments 34 CHAPTER IV: AN ATTEMPT TOWARDS A METHODOLOGY OF FINANCIAL LIBERALIZATION 37 4.1 Introduction 37 4.2 The Roies of Financial Markets 38 4.3 Phases of Financial Liberalization Processes 39 4.4 Public Policy Objectives in the Financial Liberalization Process: Measures Involved in Different Phases 43 4.5 Dynamics of Bchavioural Change: Theoretical Background of Myopia on Ihe Parl of Economic Agents 45 4.6 Concluding Comments 47 PART II TURKEY'S FINANCIAL LIBERALIZATION IN THE 1980'S CHAPTER V: SALIENT FEATURES OF THE 1980-1992 POLICY EXPERIENCE İN TURKEY 53 5.1 Introduction 53 5.2 Salient Features of the Liberalization Process 54 5.3 Stabilization Over-determines Liberalization 57 5.4 Concluding Comments 60 CHAPTER VI: POST-1980 PUBLIC POLİCY MEASURES TOWARDS FINANCIAL LIBERALIZATION 63 6.1 Introducüon 63 6.2 The Financial Crisis of 1982 and Its Significance 63 6.3 The Financial Sector Reform in Perspective 65 6.4 Measures to Limit Government Intervention to Bilateral Transactions 66 6.5 The Second Phase of the Reform Process 69 6.6 Concluding Comments 77 PART III THE PERFORMANCE OF FINANCIAL LIBERALIZATION POLICIES IN TURKEY CHAPTER VII: FINANCIAL SYSTEM IN THE POST-REFORM PERIOD: POLICY OBJECTIVES AND PERFORMANCE EVALUATION 81 7.1 Introduction 81 7.2 General Overview of the Results of Financial Liberalization Process in Turkey 82 7.3 The Charactcristics of the Period Under Analysis 85 7.4 Increase in the Size of the Financial Sector 86 7.5 Increase in the Volume of Domestic Savings and Investments 88 7.6 Positive High Real Rates of Interest 91 7.7 Short-term Capital Inflows and Exchange Rate Appreciation 95 7.8 Concluding Comments 98 CHAPTER VIII: THE IMPACT OF PUBLIC POLICY MEASURES ON FINANCIAL DECISION MAKING 101 8.1 Introduction 101 8.2 Characteristics of Change in Turkish Financial Markets: An Evaluation of Performance Results 102 8.3 Developmcnts in Individual Markets and Financial Change 112 8.4 Conciuding Comments 138 CHAPTER IX: CONCLUSIONS 141 REFERENCES 145.
Author: Nancy Auerbach Publisher: Routledge ISBN: 0429976798 Category : Political Science Languages : en Pages : 265
Book Description
In States, Banks, and Markets Nancy Neiman Auerbach approaches financial policymaking as a strategic interaction between two sets of domestic actors: private financiers and state officials. Through a comparative lens, Auerbach explains why the transition to financial liberalization was accompanied by economic crisis and declining growth rates in countries such as Mexico, while the same policy was associated with higher growth rates and a relatively more equitable distribution of income in other countries such as South Korea and Hong Kong.Auerbach first sets up a theoretical foundation that underlies the comparative case studies, and she then follows with a detailed account of Mexico's transition to financial liberalization in the 1980s. The author systematically compares various countries' cases--Germany, South Korea, Hong Kong, Turkey--with Mexico as a means of underscoring the central and recurring themes illustrated by financial market politics in newly industrializing countries. The author then returns to her analysis of Mexico with an examination of the Mexican peso crisis in light of the recent financial crises in Asia. Auerbach not only demonstrates how the timing and duration of the liberalization process is the element differentiating the performance of newly industrializing countries (rather than financial liberalization itself), for she takes the analysis a step further by explaining the economic and political preconditions that put a country in the position to choose a reasonable reform path.
Author: International Monetary Fund. Independent Evaluation Office Publisher: International Monetary Fund ISBN: 1589064151 Category : Business & Economics Languages : en Pages : 114
Book Description
Drawing on evidence from a sample of emerging market economies over the period 1990-2004, this evaluation report reviews the IMF’s approach to capital account liberalization and related issues. The evaluation seeks to contribute to transparency by documenting what in practice has been the IMF's approach to these issues and to identify areas where the IMF’s instruments and operating methods might be improved, in order to deal with these issues more effectively.
Author: Mr.Thierry Tressel Publisher: International Monetary Fund ISBN: 1451874294 Category : Business & Economics Languages : en Pages : 54
Book Description
This paper presents a simultaneous assessment of the relationship between economic performance and three groups of economic reforms: domestic finance, trade, and the capital account. Among these, domestic financial reforms, and trade reforms, are robustly associated with economic growth, but only in middle-income countries. In contrast, we do not find any systematic positive relationship between capital account liberalization and economic growth. Moreover, the effect of domestic financial reforms on economic growth in middle-income countries is explained by improvements in measured aggregate TFP growth, not by higher aggregate investment. We present evidence that variation in the quality of property rights helps explain the heterogeneity of the effectiveness of financial and trade reforms in developing countries. The evidence suggests that sufficiently developed property rights are a precondition for reaping the benefits of economic reform. Our results are robust to endogeneity bias and a number of alternative specifications.
Author: Asli Demirgüç-Kunt Publisher: World Bank Publications ISBN: Category : Bancos Languages : en Pages : 53
Book Description
A study of 53 countries during 1980-95 finds that financial liberalization increases the probability of a banking crisis, but less so where the institutional environment is strong. In particular, respect for the rule of law, a low level of corruption, and good contract enforcement are relevant institutional characteristics. the data also show that, after liberalization, financially repressed countries tend to have improved financial development even if they experience a banking crisis. This is not true for financially restrained countries. This paper’s results support a cautious approach to financial liberalization where institutions are weak, even if macroeconomic stabilization has been achieved.
Author: Luiz Fernando de Paula Publisher: Taylor & Francis ISBN: 1136854908 Category : Business & Economics Languages : en Pages : 273
Book Description
Since the beginning of the 1990s, Brazil has followed a pattern of economic development inspired by Washington Consensus. This framework includes a set of liberalising and market friendly policies such as privatisation, trade liberalization, stimulus to foreign direct investment, tax reform, and social security reforms. This book assesses the determinants and impacts of financial liberalisation in Brazil considering its two dimensions: the opening up of the balance of payments capital account, and the penetration by foreign bank of the domestic banking sector. The author combines theoretical and empirical analyses. Some make use of mathematical models and/or statistical techniques; however, they are only used when they are strictly necessary to the analysis.
Author: Christian Roland Publisher: Springer Science & Business Media ISBN: 3790819824 Category : Business & Economics Languages : en Pages : 309
Book Description
This fascinating and timely work explores in detail the changes in the Indian banking sector over the last 20 years, and puts them into a comparative perspective with the Chinese banking sector. For this purpose, the author develops a detailed indicator-based framework for assessing the liberalization of a banking sector along various process steps based on financial liberalization and transformation studies. The key finding is that while liberalization has improved the sectoral performance, it has so far had no effect on the macro level.
Author: Robert Townsend
Author: Robert Townsend
Author: Xavier Giné
Author: Güven Sak
Author: Nancy Auerbach
Author: Pavel A. Chernyshov
Author: International Monetary Fund. Independent Evaluation Office
Author: Mr.Thierry Tressel
Author: Asli Demirgüç-Kunt
Author: Luiz Fernando de Paula
Author: Christian Roland