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Emerging Equity Markets and Economic Development

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  • Geert Bekaert
  • Campbell R. Harvey
  • Christian Lundblad

Abstract

We provide an analysis of real economic growth prospects in emerging markets after financial liberalizations. In contrast with previous research, we identify the financial liberalization dates and examine the influence of liberalizations while controlling for a number of other macroeconomic and financial variables. Our work also introduces an econometric methodology that allows us to use extensive time-series as well as cross-sectional information for our tests. We find across a number of different specifications that financial liberalizations are associated with significant increases in real economic growth.

Suggested Citation

  • Geert Bekaert & Campbell R. Harvey & Christian Lundblad, 2000. "Emerging Equity Markets and Economic Development," NBER Working Papers 7763, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7763
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    References listed on IDEAS

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    JEL classification:

    • F3 - International Economics - - International Finance
    • G0 - Financial Economics - - General

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