Short-Run Pain, Long-Run Gain: The Effects of Financial Liberalization
By S. Schmukler, Graciela L. Kaminsky. Social Science Research Network, 2002
522 citations recorded by the source corpus.
The authors examine the short- and long-run effects of financial liberalization on capital markets. To do so, they construct a new comprehensive chronology of financial liberalization in 28 developed and emerging economies since 1973. The authors also construct an algorithm to identify booms and busts in stock market prices. The results indicate that financial liberalization is followed by more pronounced boom-bust cycles in the short run. But financial liberalization leads to more stable markets in the long run. Finally, the authors analyze the sequencing of liberalization and institutional reforms to understand the contrasting short- and long-run effects of liberalization.
Subfields: Epidemiology, Radiology, Nuclear Medicine and Imaging, Surgery
View Paper: https://www.semanticscholar.org/paper/464d8ffc6c174acd1fff2736b9f2da9dbcf6b2e5
Citations in the corpus
- Surfing the Waves of Globalization: Asia and Financial Globalization in the Context of the Trilemma (2010, unknown): “Based on this view, financial openness could expose economies to volatile cross-border capital flows resulting in sudden stops or reversal of capital flows, thereby making economies vulnerable to boom-bust cycles (Kaminsky and Schmukler, 2002).”
- Financial Openness and Growth: Short-Run Gain, Long-Run Pain? (2007, unknown): “Kaminsky and Schmukler (2003) investigate whether the sequencing of financial liberalisation plays a role in explaining the amplitude of equity market cycles.”
- Stock market development and internationalization: Do economic fundamentals spur both similarly? (2006, unknown): “Bekaert et al. (2005) and Kaminsky and Schmukler (2003) Global measure of country growth opportunities Global measure of country-specific growth opportunities, calculated as the log of the inner product of a vector of global industry price earnings ratios and a vector of country-specific industry…”
- Liberalisation and stock market co-movement between emerging economies (2011, unknown): “Since our dependent variable is a measure of stock price co-movement, the degree of cross-sectional dependence ySeveral other measures for financial liberalisation are available; see Kaminsky and Schmukler (2003) and Miniane (2004).”
- One Cost of the Chilean Capital Controls: Increased Financial Constraints for Smalles Traded Firms (2003, unknown): “See Love (2003) for an excellent discussion of why cash stock is a better proxy for Cash than cash flow. generally support theoretical predictions.”
- International Financial Integration Through Equity Markets: Which Firms from Which Countries Go Global? (2007, unknown): “Bekaert et al. (2005), Kaminsky and Schmukler (2003) , and Vinhas de Souza (2005).”
- Financial Globalization and Economic Policies (2009, unknown): “In addition, reforms to institutions take place mostly after fi nancial integration and that there appears to be a substantial improvement in the measures of law and order between partial and full liberalization (Kaminsky and Schmukler, 2003).”