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Capital account liberalization and unemployment in industrial countries

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  • Horst Feldmann

Abstract

Using data on 21 industrial countries over 1973 to 2005, this article finds that the liberalization of capital accounts implemented during this period has probably reduced unemployment. The magnitude of the estimated effect is substantial. We control for both endogeneity of capital account regulation and all major determinants of unemployment. The results are robust to variations in specification.

Suggested Citation

  • Horst Feldmann, 2013. "Capital account liberalization and unemployment in industrial countries," Applied Economics Letters, Taylor & Francis Journals, vol. 20(6), pages 566-571, April.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:6:p:566-571
    DOI: 10.1080/13504851.2012.718058
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    1. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
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    6. Abdul Abiad & Enrica Detragiache & Thierry Tressel, 2010. "A New Database of Financial Reforms," IMF Staff Papers, Palgrave Macmillan, vol. 57(2), pages 281-302, June.
    7. Dennis P. Quinn & A. Maria Toyoda, 2008. "Does Capital Account Liberalization Lead to Growth?," The Review of Financial Studies, Society for Financial Studies, vol. 21(3), pages 1403-1449, May.
    8. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
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    Cited by:

    1. Nurullah Gur, 2015. "Financial Integration, Financial Dependence and Employment Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 493-500.

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