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Ouverture financière dans les pays émergents : mesure et analyse
[Financial openness in emerging countries: measure and analysis]

Author

Listed:
  • Kablan, Sandrine

Abstract

This study aims to analyze the evolution of financial openness of emerging countries from 1970 to 1999. We analyze for different regions: Europe, Asia, Latin America and Africa, the evolution of the ratio of financial inflows and outflows to GDP. This value will be calculated using the database of the CEPII (Centre d’études prospectives et d’informations internationales) CHELEM, for which adjustments and restatements of flows in the balance of payments have been made in order to have consistent data flows across time and space. Our results show that for Europe and Latin America, increasing financial openness is the result of both foreign direct investment (FDI) and portfolio investment (PI). For Asia and Africa by cons, this increase is due to IP and FDI respectively. A second part, using panel data, we link financial openness to macroeconomic variables. The level of financial development, deregulation, trade liberalization and the GDP of industrialized countries have a positive impact on financial openness. Other variables such as political instability, the country's creditworthiness, the level of investment, exchange rate regime, fiscal policy, the development level are not significant.

Suggested Citation

  • Kablan, Sandrine, 2003. "Ouverture financière dans les pays émergents : mesure et analyse [Financial openness in emerging countries: measure and analysis]," MPRA Paper 41315, University Library of Munich, Germany, revised 28 Sep 2003.
    • Handle: RePEc:pra:mprapa:41315
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    References listed on IDEAS

    as
    1. Gian Maria Milesi-Ferretti, & Philip R. Lane, 2003. "International Financial Integration," The Institute for International Integration Studies Discussion Paper Series iiisdp03, IIIS.
    2. Mr. Marco Rossi, 1999. "Financial Fragility and Economic Performance in Developing Economies: Do Capital Controls, Prudential Regulation and Supervision Matter?," IMF Working Papers 1999/066, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial openness; emerging countries; foreign direct investment; portfolio investment;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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