IDEAS home Printed from https://ideas.repec.org/a/pal/compes/v44y2002i2p1-26.html
   My bibliography  Save this article

How Risky is Financial Liberalization in the Developing Countries?

Author

Listed:
  • Charles Wyplosz

    (Graduate Institute of International Studies, Geneva and CEPR)

Abstract

Using a sample of 27 developing and developed economies this paper asks whether financial liberalization is hazardous. It adds to the existing literature in four respects. First, it moves away from the binary coding used to identify crises, thus ignoring the difference between big and small ones. Second, it takes into account both domestic and external financial restrictions. Third, it looks separately at various instruments designed to restrict financial markets. Finally, it estimates in parallel the impact of liberalization in developed and developing countries. The main result is that financial liberalization is considerably more destabilizing in developing countries than in developed countries, leading to a boom-bust cycle. Comparative Economic Studies (2002) 44, 1–26; doi:10.1057/ces.2002.7

Suggested Citation

  • Charles Wyplosz, 2002. "How Risky is Financial Liberalization in the Developing Countries?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 44(2-3), pages 1-26, September.
    • Handle: RePEc:pal:compes:v:44:y:2002:i:2:p:1-26
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/ces/journal/v44/n2/pdf/ces20027a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/ces/journal/v44/n2/full/ces20027a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Bonghoon & Kenny, Lawrence W., 2007. "Explaining when developing countries liberalize their financial equity markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 17(4), pages 387-402, October.
    2. Ahmet Atil Asici, 2010. "Parametric and non-parametric approaches to exits from fixed exchange rate regimes," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 381-406.
    3. Wyplosz Charles, 2010. "Is the Era of the Dollar Over?," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-16, December.
    4. Tuomas Komulainen & ) & Johanna Lukkarila, 2003. "What drives financial crises in emerging markets?," Macroeconomics 0304010, University Library of Munich, Germany.
    5. Dong, Baomin & Gu, Xinhua & Song, Huasheng, 2017. "Capital market liberalization: Optimal tradeoff and bargaining delay," The North American Journal of Economics and Finance, Elsevier, vol. 39(C), pages 78-88.
    6. Komulainen, Tuomas & Lukkarila, Johanna, 2003. "What drives financial crises in emerging markets?," Emerging Markets Review, Elsevier, vol. 4(3), pages 248-272, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:compes:v:44:y:2002:i:2:p:1-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.