Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63507
Authors: 
Hermes, Niels
Lensink, Robert
Year of Publication: 
2005
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2005/69
Abstract: 
This paper aims to investigate the relationship between financial liberalization on the one hand and saving, investment and economic growth on the other hand, using a new dataset for measuring financial liberalization for a sample of 25 developing economies over the period 1973-96. We find no evidence that financial liberalization affects domestic saving and total investment (although there are some signs to believe that liberalization may actually reduce rather than increase domestic saving), whereas it is positively associated with private investment, as well as with per capita GDP growth. We find a negative relationship between financial liberalization and public investment. These results suggest that financial liberalization leads to a substitution from public to private investment, which may contribute to higher economic growth.
Subjects: 
financial liberalization
saving
investment
economic growth
JEL: 
O16
ISBN: 
929190757X
Document Type: 
Working Paper

Files in This Item:
File
Size
160.6 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.