|
Archive@NYU >
Stern School of Business >
Stern School Faculty Pages >
Peter Henry's Collection >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/31606
|
| Title: | Capital Account Liberalization: Theory, Evidence and Speculation |
| Authors: | Henry, Peter Blair |
| Issue Date: | Dec-2007 |
| Publisher: | Journal of Economic Literature |
| Abstract: | Research on the macroeconomic impact of capital account liberalization
finds few, if any, robust effects of liberalization on real variables.
In contrast to the prevailing wisdom, I argue that the textbook theory
of liberalization holds up quite well to a critical reading of this
literature. Most papers that find no effect of liberalization on real
variables tell us nothing about the empirical validity of the theory
because they do not really test it. This paper explains why it is that
most studies do not really address the theory they set out to test. It
also discusses what is necessary to test the theory and examines papers
that have done so. Studies that actually test the theory show that
liberalization has significant effects on the cost of capital,
investment, and economic growth. |
| URI: | http://hdl.handle.net/2451/31606 |
| Appears in Collections: | Peter Henry's Collection
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
