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The impact of financial liberalization policies on financial development: evidence from developing economics
Author(s) -
Arestis Philip,
Demetriades Panicos,
Fattouh Bassam,
Mouratidis Kostas
Publication year - 2002
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.181
Subject(s) - economics , market liquidity , liberalization , developing country , financial intermediary , sample (material) , financial deepening , interest rate , finance , financial system , monetary economics , economic growth , chemistry , chromatography , market economy
We collect data on a number of financial restraints, including restrictions on deposit and lending interest rates and reserve and liquidity requirements, from central banks of six developing countries. We estimate the effects of these policies on financial development, controlling for the effect of economic development and using standard econometric techniques. We find that the effects of financial policies vary considerably across our sample of countries. Our findings demonstrate that financial liberalisation is a much more complex process than has been assumed by earlier literature and its effects on financial development are ambiguous. Copyright © 2002 John Wiley & Sons, Ltd.