The Impact of Financial Liberalization on The Economic Performance of Selected Asian Countries-synthetic control method

• Main Authors: Ting-Hsu Chen, 陳亭旭
• Other Authors: Pei-chien Lin
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/89376751254181710308

碩士 === 淡江大學 === 產業經濟學系碩士班 === 103 === In the 1980s and 1990s, more and more emerging economies initiated financial liberalization in the hope to boost their economic growth. However, many previous studies using cross-country data to study this issue generally infer the growth effect of financial liberalization on average and possibly suffer endogeneity problem.For that concern, a comparative case study may be an attractive alternative. In this paper, I use the synthesis control method (SCM) to reinvestigate the impact of financial liberalization on the economic performance of selected Asian countries.My sample contains a total 20 countries, including eight targeted Asian countries, i.e., ,India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka and Thailand and 12 control countries. The empirical findings are as follows: 1.Financial liberalization has significant positive impact onthe economic performance of Indonesia, Malaysia, and Thailand. 2.On the other hand, financial liberalization exerts no significant growth effect in Bangladesh , India, Pakistan , the Philippines, and Sri Lanka. 3.For those countries with positive growth effect resulting from financial liberalization, there are usually a number of successful political or economic reform measures accompanied In addition, political instability and inadequate infrastructure can undermine the positive impact of financial liberalization.