Financial Openness and Macroeconomic Volatility

• Main Authors: Chien-Chiang Wang, 王建強
• Other Authors: 陳旭昇
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/66881012086113638997

碩士 === 國立臺灣大學 === 經濟學研究所 === 95 === We separate the measure of financial openness into capital inflows openness and capital outflows openness since capital inflows and capital outflows seem to have different impacts on macroeconomic volatility. We use panel volatility model and panel EARCH model to examine the effects of capital inflows openness and capital outflows openness on output and consumption volatility. Our results show that the influences of financial openness on macroeconomic volatility are different between industrial countries and developing countries. Capital inflows would increase output and consumption volatility in developing, but the effect is insignificant in industrial countries. Finally, capital outflows can decrease consumption volatility in both industrial countries and developing countries.