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Are we there yet? On the convergence of financial reforms

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  • Jac Heckelman
  • Sandeep Mazumder

Abstract

Since the 1970s, there have been substantial financial reforms across the world, however little research has been devoted to studying the convergence path of these reforms. While Abiad and Mody (Am Econ Rev 95:66–88, 2005 ) find that there is movement towards a global ‘norm’ of financial reform, their findings are based upon a cross-sectional approach that has been widely criticized in the literature. In this paper we offer new time-series evidence on the convergence of financial reforms both across and within regions, which can also act as a metric to measure the degree of globalization among countries’ financial systems. We find that some regions of the world have fully converged, but the advanced economies and Sub-Saharan Africa are not converging. In addition, while most countries have fully converged within their own region, notable exceptions are also identified. These results suggest that while financial reforms have largely become homogenized, important distinctions still remain. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Jac Heckelman & Sandeep Mazumder, 2013. "Are we there yet? On the convergence of financial reforms," Economics of Governance, Springer, vol. 14(4), pages 385-409, November.
  • Handle: RePEc:spr:ecogov:v:14:y:2013:i:4:p:385-409
    DOI: 10.1007/s10101-013-0136-z
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    Cited by:

    1. Paschalis Arvanitidis & Christos Kollias & Petros Messis, 2016. "Asymmetric Convergence in Globalization? Findings from a Disaggregated Analysis," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 14(2 (Summer), pages 117-135.
    2. Love, Inessa & Peria, Maria Soledad Martinez & Singh, Sandeep, 2013. "Collateral registries for movable assets : does their introduction spur firms'access to bank finance ?," Policy Research Working Paper Series 6477, The World Bank.
    3. Heckelman, Jac C. & Young, Andrew, 2018. "How Global is Globalization?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(3), August.
    4. Ageliki Anagnostou & Dimitris Kallioras & Christos Kollias, 2016. "Governance Convergence Among the EU28?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 133-146, October.
    5. Martinez Peria, Maria Soledad & Singh, Sandeep, 2014. "The impact of credit information sharing reforms on firm financing?," Policy Research Working Paper Series 7013, The World Bank.

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    More about this item

    Keywords

    Convergence; Financial reforms; Liberalization; P11; P34; N20; G28;
    All these keywords.

    JEL classification:

    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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