본문 바로가기
KERD
논문KCI 등재

FINANCIAL LIBERALIZATION, POLITICAL OPENNESS AND GROWTH IN DEVELOPING COUNTRIES: RELATIONSHIP AND TRANSMISSION CHANNELS

2

조회

0

다운로드

1

인용

0

참고문헌

키워드

주제분류경제학

초록

The purpose of this paper is to study the relationship between financial integration, political openness, and economic development measured with GDP per capita growth. Our empirical investigation covers a sample of 108 developing countries between 1984 and 2008 and uses both static and dynamic panel data estimation. The results show that financial liberalization positively affects growth directly and through indirect channel like investment, trade and macroeconomic stability. It also supports financial development and promotes human capital. Even though democracy doesn’t directly influence growth, it has an indirect positive effect on it through favoring international trade in addition to financial and human capital development. Otherwise, political instability negatively affects growth directly and indirectly through decreasing investment and increasing inflation.

Abstract

The purpose of this paper is to study the relationship between financial integration, political openness, and economic development measured with GDP per capita growth. Our empirical investigation covers a sample of 108 developing countries between 1984 and 2008 and uses both static and dynamic panel data estimation. The results show that financial liberalization positively affects growth directly and through indirect channel like investment, trade and macroeconomic stability. It also supports financial development and promotes human capital. Even though democracy doesn’t directly influence growth, it has an indirect positive effect on it through favoring international trade in addition to financial and human capital development. Otherwise, political instability negatively affects growth directly and indirectly through decreasing investment and increasing inflation.

참고문헌 (110)

  1. Acemoglu, D., "Unbundling Institutions", Journal of Political Economy, 113(5), pp.949~995 (2005)
  2. Acemoglu, D., "Handbook of Income Distribution" (2015), Elsevier
  3. ADEGOKE IBRAHIM ADELEKE, "FDI-GROWTH NEXUS IN AFRICA: DOES GOVERNANCE MATTER?", Journal of Economic Development, 39(1), pp.111~135 (2014), 경제연구소[DOI]
  4. Aisen, A., "How Does Political Instability Affect Economic Growth?", European Journal of Political Economy, 29, pp.151~167 (2013)
  5. Alesina, A., "Income Distribution, Political Instability, and Investment", European Economic Review, 40(6), pp.1203~1228 (1996)
  6. Ali, F. A., "Do Institutions Matter for Foreign Direct Investment?", Open Economies Review, 21(2), pp.201~219 (2010)
  7. Allegret, J.P., "Développement Financier, Croissance de Long Terme et Effets de Seuil", Panoeconomicus, 59, pp.553~581 (2012)
  8. Antić, M., "Democracy versus Dictatorship: The Influence of Political Regime on GDP per Capita Growth", Economic Review, 55(9-10), pp.773~803 (2004)
  9. Arellano, M., "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations", Review of Economic Studies, 58, pp.277~297 (1991)
  10. Arellano, M., "Another Look at the Instrumental Variable Estimation of Error-components Models", Journal of Econometrics, 68(1), pp.29~51 (1995)
  11. Awan, R. U., "Rate of Interest, Financial Liberalization and Domestic Savings Behavior in Pakistan", International Journal of Economics and Finance, 2(4), pp.75~81 (2010)
  12. Ayadi, R., "Economic and Social Development of the Southern and Eastern Mediterranean Countries" (2015), Springer International Publishing
  13. Azzimonti, M., "Barriers to Foreign Direct Investment under Political Instability", FRB Richmond Economic Quarterly, 93(3), pp.287~315 (2007)
  14. Barro, R. J., "Economic Growth in a Cross Section of Countries", Quarterly Journal of Economics, 106(2), pp.407~443 (1991)
  15. Barro, R. J., "Determinants of Economic Growth : A Cross-country Empirical Study" (1998), MIT Press
  16. Bates, R., "The Political Economy of Economic Growth in Africa, 1960-2000" (2007), Cambridge University Press
  17. Baum, M.A., "The Political Economy of Growth : Democracy and Human Capital", American Journal of Political Science, 47(2), pp.333~347 (2003)
  18. Berkowitz, D., "Trade, Law, and Product Complexity", Review of Economics and Statistics, 88(2), pp.363~373 (2006)
  19. Berthélemy, J. C., "Political Instability, Political Regimes and Economic Performance in African Countries", Paper Prepared for African Development Bank (2002), African Economic Outlook
  20. Blanco, L., "Long Live Democracy: The Determinants of Political Instability in Latin America", Journal of Development Studies, 45(1), pp.76~95 (2009)
  21. Blundell, R., "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models", Journal of Econometrics, 87(1), pp.115~143 (1998)
  22. Borensztein, E., "How Does Foreign Direct Investment affect Economic Growth?", Journal of International Economics, 45(1), pp.115~135 (1998)
  23. Brender, A., "Political Budget Cycles in New versus Established Democracies", Journal of Monetary Economics, 52(7), pp.1271~1295 (2005)
  24. Bruno, V., "The Real Effect of Foreign Banks", Review of Finance, 18(5), pp.1683~1716 (2014)
  25. Campos, N. F., "Two to Tangle: Financial Development, Political Instability and Economic Growth in Argentina", Journal of Banking and Finance, 36(1), pp.290~304 (2012)
  26. Caprio, G., "Restoring Banking Stability : Beyond Supervised Capital Requirements", Journal of Economic Perspectives, 13(4), pp.43~64 (1999)
  27. Chou, Y. K., "Modeling Financial Innovation and Economic Growth : Why the Financial Sector Matters to the Real Economy", Journal of Economic Education, 38(1), pp.78~90 (2007)
  28. Clarke, G. R. G., "How Institutional Quality and Economic Factors Impact Technological Deepening in Developing Countries", Journal of International Development, 13(8), pp.1097~1118 (2001)
  29. Cukierman, A., "Seigniorage and Political Instability", American Economic Review, 82(3), pp.537~555 (1992)
  30. Das, M., "Income Inequality: The Aftermath of Stock Market Liberalization in Emerging Markets", Journal of Empirical Finance, 10(1-2), pp.217~248 (2003)
  31. De Haan, J., "New Evidence on the Relationship between Democracy and Economic Growth", Public Choice, 86(1, pp.2) (1996), 175~198
  32. De Soysa, I., "How Taxing is Trade? Globalization, State Capacity, & Civil War, 1960-99", University of Konstanz presented at Polarization and Conflict Project (2006)
  33. Dizaji, S.F., "Political Institutions and Government Spending Behavior : Theory and Evidence from Iran", International Tax and Public Finance, 23(3), pp.522~549 (2016)
  34. Drury, A. C., "Corruption, Democracy, and Economic Growth", International Political Science Review, 27(2), pp.121~136 (2006)
  35. Dutta, N., "Do Potential Skilled Emigrants Care About Political Stability at Home?", Review of Development Economics, 15, pp.442~457 (2011)
  36. Efendic, A., "Institutions and Economic Performance: A Meta-regression Analysis", European Journal of Political Economy, 27(3), pp.586~599 (2011)
  37. Egbuna, N. E., "Capital Account Liberalization and Growth in the WAMZ: An Empirical Analysis", International Journal of Economics and Finance, 5(12), pp.40~62 (2013)
  38. Eichengreen, B., "Capital Account Liberalization, Financial Development and Industry Growth : A Synthetic View", Journal of International Money and Finance, 30(6), pp.1090~1106 (2011)
  39. Eichengreen, B., "Capital Controls in the 21st Century", Journal of International Money and Finance, 48, pp.1~16 (2014)
  40. Fosu, A. K., "Economic Fluctuations and Growth in Sub-Saharan Africa : The Importance of Import Instability", Journal of Development Studies, 37(3), pp.71~85 (2001)
  41. Fry, M. J., "Money, Interest, and Banking in Economic Development" (1995), Johns Hopkins University Press
  42. Galbis, V., "Financial Intermediation and Economic Growth in Less‐developed Countries : A Theoretical Approach", Journal of Development Studies, 13(2), pp.58~72 (1977)
  43. Gani, A., "New Zealand’s Trade with Asia and the Role of Good Governance", International Review of Economics and Finance, 42, pp.36~53 (2016)
  44. Galbis, V., "Financial Intermediation and Economic Growth in Less‐developed Countries: A Theoretical Approach", Journal of Development Studies, 13(2), pp.58~72 (1977)
  45. Gazdar, K., "Institutions and the Finance-growth Nexus : Empirical Evidence from MENA Countries", Borsa Istanbul Review, 15(3), pp.137~160 (2015)
  46. Gehringer, A., "Growth, Productivity and Capital Accumulation : The Effects of Financial Liberalization in the Case of European Integration", International Review of Economics and Finance, 25, pp.291~309 (2013)
  47. Gerring, J., "Democracy and Human Development", Journal of Politics, 74(1), pp.1~17 (2012)
  48. Gillis, M., "Economics of Development" (1996), W. W. Norton
  49. Hair J. F., "Multivariate Data Analysis" (2009), Prentice Hall
  50. Hansen, L. P., "Large Sample Properties of Generalized Method of Moments Estimators", Econometrica, 50(4), pp.1029~1054 (1982)
  51. Hausken, K., "Government Spending and Taxation in Democracies and Autocracies", Constitutional Political Economy, 15(3), pp.239~259 (2004)
  52. Henry, P. B., "Do Stock Market Liberalizations cause Investment Booms?", Journal of Financial Economics, 58(1-2), pp.301~334 (2000)
  53. Henry, P. B., "Capital Account Liberalization: Theory, Evidence, and Speculation", Journal of Economic Literature, 45(4), pp.887~935 (2007)
  54. Hermes, N., "Financial Development, Institutions, Growth and Poverty Reduction" (2008), Palgrave Macmillan
  55. Herrala, R., "Capital Accumulation in a Politically Unstable Region", Journal of International Money and Finance, 64, pp.1~15 (2016)
  56. Hurlin, C., "Panel-Data Cointegration Tests : A Survey", Economie and Prévision, 180(181), pp.241~265 (2008)
  57. Imbs, J., "The Real Effects of Financial Integration", Journal of International Economics, 68(2), pp.296~324 (2006)
  58. Islamaj, E., "Industrial Specialization, Financial Integration and International Consumption Risk Sharing", B. E. Journal of Macroeconomics, 14(1), pp.1~33 (2014)
  59. Capital Mobility and Reform, "Jeanne, O.", Society for Economic Dynamics, ~, pp.2009 Meeting Paper No. 107 (2009)
  60. Jensen, N. M., "Democratic Governance and Multinational Corporations : Political Regimes and Inflows of Foreign Direct Investment", International Organization, 57(3), pp.587~616 (2003)
  61. Jong-A-Pin, R., "On the Measurement of Political Instability and its Impact on Economic Growth", European Journal of Political Economy, 25(1), pp.15~29 (2009)
  62. Kalemli-Ozcan, S., "Risk Sharing and Industrial Specialization : Regional and International Evidence", American Economic Review, 93(3), pp.903~918 (2003)
  63. Kapur, B. K., "Alternative Stabilization Policies for Less-developed Economies", Journal of Political Economy, 84(4), pp.777~795 (1976)
  64. Keller, W., "International Trade, Foreign Direct Investment, and Technology Spillovers", Handbook of the Economics of Innovation, 2, pp.793~829 (2010)
  65. Koo, J., "Financial Liberalization and Corporate Investments : Evidence from Korean Firm Data", Asian Economic Journal, 18(3), pp.277~292 (2004)
  66. Korzeniewicz, R. P., "Review of Review of Cultures of Politics", Politics of Cultures: Re-Visioning Latin American Social Movements, by S.E. Alvarez, E. Dagnino and A. Escobar, 1999, pp.41(3), 159~164
  67. Kose, M., "Does Openness to International Financial Flows Raise Productivity Growth?", Journal of International Money and Finance, 28(4), pp.554~580 (2009)
  68. Kose, M., "Financial Globalization: A Reappraisal", IMF Staff Papers, 56(1), pp.8~62 (2009)
  69. Laeven, L., "Does Financial Liberalization Reduce Financing Constraints?", Financial Management, 32(1), pp.5~34 (2003)
  70. LaPorta, R., "Law and Finance", Journal of Political Economy, 106(6), pp.1113~1155 (1998)
  71. Lebovic, J. H., "Spending Priorities and Democratic Rule in Latin America", Journal of Conflict Resolution, 45(4), pp.427~452 (2001)
  72. Levchenko, A. A., "Institutional Quality and International Trade", Review of Economic Studies, 74(3), pp.791~819 (2007)
  73. Li, Q., "Democracy, Autocracy, and Tax Incentives to Foreign Direct Investors : A Cross-National Analysis", Journal of Politics, 68(1), pp.62~74 (2006)
  74. Lipset, S. M., "Some Social Requisites of Democracy : Economic Development and Political Legitimacy", American Political Science Review, 53(1), pp.69~105 (1959)
  75. Lipset, S. M., "Political Man: The Social bases of Politics" (1960), Johns Hopkins University Press
  76. Mathieson, D. J., "Financial Reform and Stabilization Policy in a Developing Economy", Journal of Development Economics, 7(3), pp.359~395 (1980)
  77. Money and Capital in Economic Development, "McKinnon, R. I.", Brookings Institution, ~ (2001)
  78. Mijiyawa, A., "Inflation and Democracy in Former Extractive Colonies Analysis with a New Instrumental Variable", Proceedings of the German Development Economics Conference (2008)
  79. Milner, H.V., "Why the Move to Free Trade? Democracy and Trade Policy in the Developing Countries", International Organization, 59(1), pp.107~143 (2005)
  80. Mimir, Y., "On International Consumption Risk Sharing, Financial Integration and Financial Development", Emerging Markets Finance and Trade, 52(5), pp.1241~1258 (2016)
  81. Razafindrakoto M., "Peut-on Se Fier Aux Bases de Données Internationales Sur La Gouvernance􀀀? Une Confrontation Entre Enquêtes-Experts et Enquêtes-Ménages En Afrique Subsaharienne", Ined-Institut National D’études Démographiques, ~ (2017)
  82. Morrison, D. G., "Cultural Pluralism, Modernization, and Conflict : An Empirical Analysis of Sources of Political Instability in African Nations", Canadian Journal of Political Science, 5(1), pp.82~103 (1972)
  83. Morrow, J. D., "The Political Determinants of International Trade : The Major Powers, 1907-90", American Political Science Review, 92(3), pp.649~661 (1998)
  84. O’Brien, R. M., "A Caution Regarding Rules of Thumb for Variance Inflation Factors", Quality and Quantity, 41(5), pp.673~690 (2007)
  85. O’Rourke, K.H., "The New Comparative Economic History: Essays in Honor of Jeffrey G. Williamson" (2006), MIT Press
  86. O’Toole, C. M., "Does Financial Liberalisation Improve Access to Investment Finance in Developing Countries?", Journal of Globalization and Development, 5(1), pp.41~74 (2014)
  87. Pan, Y., "Ethnic Difference in the Relationship between Acute Inflammation and Serum Ferritin in US Adult Males", Epidemiology and Infection, 136(3), pp.421~431 (2008)
  88. Przeworski, A., "Political Regimes and Economic Growth", Journal of Economic Perspectives, 7(3), pp.51~69 (1993)
  89. Rauch, J. E., "Bureaucratic Structure and Bureaucratic Performance in Less Developed Countries", Journal of Public Economics, 75(1), pp.49~71 (2000)
  90. Roe, M.J., "Political Instability : Effects on Financial Development, Roots in the Severity of Economic Inequality", Journal of Comparative Economics, 39(3), pp.279~309 (2011)
  91. Rogerson, P., "Statistical Methods for Geography" (2001), SAGE Publications
  92. Roodman, D., "How to Do Xtabond2 : An Introduction to Difference and System GMM in Stata", Stata Journal, 9(1), pp.86~136 (2009)
  93. Sargan, J. D., "The Estimation of Economic Relationships using Instrumental Variables", Econometrica, 26(3), pp.393~415 (1958)
  94. Sargan, J. D., "Asymptotic Theory and Large Models", International Economic Review, 16(1), pp.75~91 (1975)
  95. Shaw, E. S., "Financial Deepening in Economic Development" (1973), Oxford University Press
  96. Shrestha, M.B., "Testing Financial Liberalization Hypothesis with ARDL Modelling Approach", Applied Financial Economics, 17(18), pp.1529~1540 (2007)
  97. Sirowy, L., "The Effects of Democracy on Economic Growth and Inequality : A Review", Studies In Comparative International Development, 25(1), pp.126~157 (1990)
  98. Stasavage, D., "Democracy and Education Spending in Africa", American Journal of Political Science, 49(2), pp.343~358 (2005)
  99. Stulz, R. M., "Golbalization, Corporate Finance, and the Cost of Capital", Journal of Applied Corporate Finance, 12(3), pp.8~25 (1999)
  100. Sung, H. E., "Democracy and Political Corruption : A Cross-national Comparison", Crime, Law and Social Change, 41(2), pp.179~193 (2004)
  101. Tavares, J., "How Democracy Affects Growth", European Economic Review, 45(8), pp.1341~1378 (2001)
  102. Taylor, L., "Structuralist Macroeconomics: Applicable Models for the Third World" (1983), Basic Books
  103. Tebaldi, E., "Does Institutional Quality Impact Innovation? Evidence from Cross-country Patent Grant Data", Applied Economics, 45(7), pp.887~900 (2013)
  104. Van Wijnbergen, . S., "Credit Policy, Inflation and Growth in a Financially Repressed Economy", Journal of Development Economics, 13(1), pp.45~65 (1983)
  105. Political Institutions and Human Development: Does Democracy Fulfil Its ‘Constructive’ And ‘Instrumental’ Role?, "Vollmer, S.", World Bank, ~ (2009)
  106. Webb D., "The Political Economy of AIDS in Africa" (2004), Ashgate Publishing
  107. Windmeijer, F., "A Finite Sample Correction for the Variance of Linear Efficient Two-step GMM Estimators", Journal of Econometrics, 126(1), pp.25~51 (2005)
  108. Wolak, F. A., "A Model of Homogeneous Input Demand Under Price Uncertainty", American Economic Review, 81(3), pp.514~538 (1991)
  109. Yildirim, J., "Democracy and Military Expenditure : A Cross-Country Evidence", Transition Studies Review, 12(1), pp.93~100 (2005)
  110. Yu, M., "Trade, Semocracy, and the Gravity Equation", Journal of Development Economics, 91(2), pp.289~300 (2010)

관련 논문AI추천

이 간행물의 다른 논문 (4건)