Financial Liberalization and Economic Growth: The Role of Institutional Factors

• Main Authors: Wei-Jen Cheng, 鄭為仁
• Other Authors: 林佩蒨
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/52620718318961621353

碩士 === 淡江大學 === 產業經濟學系碩士班 === 101 === The role of institutional factors played in the liberalization-growth nexus has been rarely investigated in the past theoretical or empirical studies. With this concern, this thesis uses a sample of 88 countries, with 21 developed and 67 developing countries, over the 1980 -2004 period to investigate the relationship between financial liberalization and institutional factors and their effects on economic growth. We apply the difference-in-difference (DID) model and autoregressive distributed lag (ARDL) model to the data. The main finding of this research are as followers: 1.Financial liberalization has a positive influence on economic growth in developing countries but no such positive effect has been found in developed countries. 2.The growth effect of financial liberalization in developing countries seems to be enhanced after controlling for institutional quality 3.The empirical evidence from the estimates for interaction term of institutional factors and financial liberalization index shows that those developing countries with higher institutional quality will have higher growth rate after adopting a more open financial liberalization policy. 4.Financial liberalization, with additional consideration of institutional factors, seems to exert only short-run effect on economic growth.