Financial Liberalization, Economic Growth, and Capital Flight: The Case of Pakistan Economy

2021 ◽  
pp. 115-134
Author(s):  
Ma Degong ◽  
Raza Ullah ◽  
Farid Ullah ◽  
Shahid Mehmood
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Capital Flight

To Raise the Golden Anchor? Financial Crises and Uncertainty During the Great Depression

1999 ◽  
Vol 59 (3) ◽  
pp. 624-658 ◽  
Author(s):  
J. Peter Ferderer ◽  
David A. Zalewski
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Great Depression ◽  
Interwar Period ◽  
Gold Standard ◽  
Financial Crises ◽  
Capital Flight ◽  
The Great Depression ◽  
Interest Rate Volatility

This study examines the interplay between financial crises, uncertainty, and economic growth during the interwar period. Comparing the experiences of ten countries, we provide evidence that reductions in the credibility of a country's commitment to the gold standard generated capital flight and higher interest rate volatility. This volatility, in turn, was inversely correlated with economic growth. These results suggest that financial crises helped propagate the Great Depression, in part, by increasing uncertainty.

scholarly journals Relationship between Financial Liberalization and Economic Growth in Emerging Economies: The Case of Vietnam

2016 ◽  
Vol 23 (01) ◽  
pp. 25-49
Author(s):  
Hoang Tran Huy ◽  
Huan Nguyen Huu ◽  
Linh Nguyen Thi Thuy
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Financial Liberalization ◽  
Response Analysis ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Term Relation

This paper examines the process of financial liberalization in Vietnam over the period from 1993 to 2013. On adopting Vector Error Correction Model (VECM), the results suggest that there is a long-term relation between economic growth and financial liberalization, in which the financial market liberalization and financial services liberalization provide better support during the growth of Vietnam’s economy. In addition, using various techniques including Granger causality test, impulse response analysis, and variance decomposition, the paper also clarifies the motives for financial liberalization from the process of short-term financial development and economic growth in the country.

Restructuring Russian Industry

Putinomics ◽  
2018 ◽  
Author(s):  
Chris Miller
Keyword(s):  
United States ◽  
Economic Growth ◽  
Oil And Gas ◽  
Oil Prices ◽  
The United States ◽  
Capital Flight ◽  
Russian Industry ◽  
Increase Productivity ◽  
Boom Period ◽  
Macroeconomic Environment

As the macroeconomic environment stabilized, business rushed to invest. Westerners often focus on ‘capital flight’ out of Russia, but the reality is that the 2000s were a boom period for investment by Russian and foreigners. The results were widely evident, as new businesses opened and productivity shot up. In sectors such as retail and steel, for example, productivity levels doubled relative to the United States, the productivity leader. Russian firms still trail far behind, but during the 2000s they made great strides. Russia is often criticized for being overly dependent on oil and gas. Certainly the country would benefit from a more diversified economy. Yet it is wrong to credit economic growth during the Putin era simply to high oil prices. Windfall oil profits are capable of boosting consumption, but they do not increase productivity. The fact that Russian firms increased productivity so rapidly shows that other factors—a stable macroeconomic climate coupled with the tenacity of Russia’s entrepreneurs—were powering the economy forward.

Does Financial Liberalization and Trade Openness Promote Growth in South Asia?

2010 ◽  
pp. 101-132
Author(s):  
Muhammad Arshad Kahn
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Trade Liberalization ◽  
Inflation Rate ◽  
Financial Liberalization ◽  
Trade Openness ◽  
Real Output ◽  
Domestic Investment ◽  
Long Run ◽  
Short Run

This chapter examines the hypotheses that trade liberalization and financial liberalization jointly enhances economic growth in the four South Asian countries including Bangladesh, India, Pakistan and Sri Lanka for the period 1970-2007 using bounds testing approach to cointegration. The results suggest that in the long-run except for Bangladesh, financial development plays no role in promoting economic growth in these countries. Furthermore, the results suggest that trade openness plays a significant role in promoting economic growth in Bangladesh and India, while exerts negative effect on Pakistan and no effect on Sri Lanka. The share of domestic investment influences real output significantly in Bangladesh, India and Pakistan. In the long- as well as short-run two-way causality between real output, trade openness, share of investment and inflation rate exists for the case of Bangladesh and India. For the case of India two-way causality between finance and growth exists in the short-run. For the case of Pakistan, there is an evidence of long-run causality between real output, finance, trade openness, share of investment and inflation rate. However, in the short-run, two-way causality between real output, trade openness and share of investment is existed and one-way causality between inflation rate, trade openness and share of investment is also observed. No evidence of short-run causality between finance and growth and vice versa for Pakistan has been seen. Finally, for Sri Lanka, an evidence of long-run causality between real output, finance, trade openness and investment share has been found. In the short-run one-way causality between finance-growth, trade-finance, trade-growth and trade-investment has been obtained. These mixed results suggest that the authorities may focuses more and more on the trade liberalization. In addition, there is a need to further deepen the banking and stock markets and provide investment friendly environment to enhance domestic investment which, in turn, promotes economic growth.

ECONOMIC GROWTH AND EXCHANGE RATE: A NEW ROAD AHEAD FOR INDONESIA

2015 ◽  
Vol 60 (02) ◽  
pp. 1550010
Author(s):  
CHONG YAH LIM
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Foreign Investment ◽  
Capital Flight ◽  
Short Article ◽  
Private Goods ◽  
The Social ◽  
Policy Shift ◽  
Industrialization Policy ◽  
Further Development

This short article advocates the further development of Indonesia through an export-oriented industrialization policy. It opines that it is only through this policy that the perennial depreciation of the Indonesian exchange rate, including through capital flight, can be stopped. The article also advocates a twin-engine approach, with the State be responsible for the efficient supply of public goods, and the private sector, including the active participation of foreign investment, be encouraged, actively, for the supply of private goods, with concentration on export-oriented manufactured goods. The social and educational system will have to give support to this fundamental policy shift.

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