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Capital account liberalization and financial globalization, 1890-1999: a synoptic view

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  • Dennis P. Quinn

    (Georgetown University, Washington, USA)

Abstract

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.

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  • Dennis P. Quinn, 2003. "Capital account liberalization and financial globalization, 1890-1999: a synoptic view," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 8(3), pages 189-204.
    • Handle: RePEc:ijf:ijfiec:v:8:y:2003:i:3:p:189-204
    DOI: 10.1002/ijfe.209
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