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Capital account liberalization and financial globalization, 1890–1999: a synoptic view
Author(s) -
Quinn Dennis P.
Publication year - 2003
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.209
Subject(s) - economics , capital account , balance of payments , openness to experience , capital (architecture) , financial capital , globalization , financial integration , liberalization , current account , monetary economics , international economics , macroeconomics , finance , financial market , exchange rate , market economy , human capital , psychology , social psychology , archaeology , history
An indicator of financial openness spanning the period 1890–1999 is used to evaluate policies towards the capital account of the balance of payments. Findings include that: financial globalization was deeper in 1890–1913 than subsequently; countries with liberal capital account policies recovered more quickly from the Great Depression than countries that restricted capital account transactions; the correlation between democracy and capital account openness was negative or zero during the gold standard era, in contrast to subsequent periods, when it has tended to be positive; and countries in geographic proximity to one another have tended to behave similarly in their policies towards the capital account. Copyright © 2003 John Wiley & Sons, Ltd.