Financial Liberalization Research Papers - Academia.edu (original) (raw)

The paper intends to analyze aspects of international economic order that are relevant to understand the integration of underdeveloped countries. Its main hypothesis is that globalization is the result of financial liberalization at the... more

The paper intends to analyze aspects of international economic order that are relevant to understand the integration of underdeveloped countries. Its main hypothesis is that globalization is the result of financial liberalization at the domestic level and of progressive capital mobility in the international field. To characterize globalization different aspects are examined, such as the influence of financial liberalization on

The new financial environment of the 1980s and 1990s has undoubtedly given rise to new risks that make the profitability of credit institutions increasingly uncertain. National and international financial transformations have led banks in... more

The new financial environment of the 1980s and 1990s has undoubtedly given rise to new risks that make the profitability of credit institutions increasingly uncertain. National and international financial transformations have led banks in Morocco to seek to expand their activities, open up internationally, and take more risk.
The Moroccan banking system suffers from a high amount of bad debts, insufficient provisioning and delays in debt collection. The objective of our study is to analyze the evolution of the fragility of Moroccan banks between 1993 and 2005.
We first assess the fragility of Moroccan commercial banks using the probabilistic method. Second, we analyze econometrically the relationship between the risk of default and the combination of some bank specific explanatory variables including equity. Our analysis shows that the evolution of the fragility of the Moroccan banking sector in general has decreased. This is mainly due to the importance of revenues from traditional operations and to the respect of prudential constraints on capital. On the other hand, bad loans seem to be the main threat of Moroccan banks, especially small banks which have seen their fragility increase during our analysis period.

Most evidence suggests that a policy of financial liberalization brings with it both benefits and costs to developing economies. It has been found that middle income countries have experienced rapid economic growth after liberalizing... more

Most evidence suggests that a policy of financial liberalization brings with it both benefits and costs to developing economies. It has been found that middle income countries have experienced rapid economic growth after liberalizing while in low income countries a similar effect has not been noticed. Many East Asian countries that have adopted financial liberalization have experienced a high economic growth period followed by a severe financial crisis. Many Latin American countries that have liberalized have had to contend with high inflation and currency collapses. In balance, whether the costs outweigh the benefits or vis-versa, appears to depend on the country undertaking the financial liberalization and the manner in which it is implemented.

Jordanian Islamic Banks (JIBs) are faced by an enormous challenge that is the financial Globalization and liberalization, where the financial openness nationally and internationally took various deep dimensions and effects that affected... more

Jordanian Islamic Banks (JIBs) are faced by an enormous challenge that is the financial Globalization and liberalization, where the financial openness nationally and internationally took various deep dimensions and effects that affected economic and financial systems worldwide.
This study aims at forming strategic response to assess the JIBs ability to take advantage of the opportunities that may be provided by financial globalization and limit its threats, through assessing the capability of Islamic banks to meet the requirements and challenges of financial globalization, in order to maximize and limit the expected opportunities and threats respectively.
The study concluded with some results such as: the financial globalization will have negative effects on Islamic banks’ autonomy and competitive position. It will also enhance the Islamic banks’ ability to create new investment and liquidity management instruments and methods, and develop the existing ones. In addition to increasing its ability to take advantage of the openness by expanding it’s operations into new markets.
The researcher provided some recommendations such as: the need to strengthen the cooperation ties between JIBs and other Islamic banks abroad, and reinforce the role of young employees in required strategic change leadership in addition to moving the responsibilities of ( Shari’ah boards supervision) from the Islamic individual banks to the central banks to become (Central Shari’ah Supervision).

En este trabajo nos proponemos revisar sintéticamente la historia reciente de la Argentina en materia de deuda pública. A tal efecto, estructuramos el trabajo integrando la cronología de sucesos con las formas políticas que adoptó el... more

En este trabajo nos proponemos revisar sintéticamente la historia reciente de la Argentina en materia de deuda pública. A tal efecto, estructuramos el trabajo integrando la cronología de sucesos con las formas políticas que adoptó el endeudamiento argentino. Comenzamos el trabajo explicando las características principales del proceso de endeudamiento desde el golpe de Estado de 1976 hasta la crisis del 2001. luego, se revisan los principales cambios ocurridos en los 12 años de gestión Kirchnerista, hasta diciembre de 2015 donde indagamos lo ocurrido en materia de endeudamiento en el primer año de la alianza Cambiemos. El trabajo señala la relevancia y los resultados de la actuación estatal, el contexto internacional y la política económica en los procesos de deuda y fuga de capitales en los diferentes períodos políticos y advierte sobre el deterioro del frente externo en la nueva gestión gubernamental llevada adelante por Cambiemos.

Led by the seminal papers of McKinnon (1973) and Shaw (1973), a significant number of studies have pointed out that financial liberalization can exert a positive effect on growth rates as interest rate levels rise towards their... more

Led by the seminal papers of McKinnon (1973) and Shaw (1973), a significant number of studies have pointed out that financial liberalization can exert a positive effect on growth rates as interest rate levels rise towards their competitive market equilibrium, while resources are efficiently allocated. Accordingly, eliminating controls on interest rates and allowing them to increase could stimulate a higher level of savings. Moreover, with the assumption of a strong response of savings to the rate of interest, higher interest rates are expected to increase financial intermediation (the level of financial asset channelled by the financial system).1 Strictly under these strong assumptions, it is likely that financial liberalization produces higher savings which ultimately fosters economic development through changes in quality (by allowing efficient allocation of resources) and quantity of investment (Reinhart & Tokatlidis, 2003).

The article seeks to explain how policies affect business groups’ decisions to stay or leave a sector of activity in a liberalized economy. The article utilizes a comparative historical approach to explain how business groups in six... more

The article seeks to explain how policies affect business groups’ decisions to stay or leave a sector of activity in a liberalized economy. The article utilizes a comparative historical approach to explain how business groups in six Central American countries decided to enter, remain in or leave the banking sector. Using case studies of the main banks belonging to business groups in the region, the article seeks to identify the impact of three policies: nationalization, privatization and liberalization. It argues that the sequence and idiosyncrasies of the policies each country adopted created divergent, path-dependent trajectories and different sets of incentives for business groups. As the analysis shows, government policies are not exclusive determinants of business strategies. However, they shape the environment in which business decisions are made. Therefore, understanding the divergent paths of different business groups in the region calls for studies that combine structural and micro-level analysis.

The aim of research is to connecting Stock exchanges in the Western Balkans, in order to reduce transaction and post-transaction costs and increases transparency and liquidity, it is preferable in view of ekonomic interests of investors... more

The aim of research is to connecting Stock exchanges in the Western Balkans, in order to reduce transaction and post-transaction costs and increases transparency and liquidity, it is preferable in view of ekonomic interests of investors interested in investing in the region. Cooperation and exchange connectivity to standardize their business and interpersonal communication based on the exchange of information, according to the rules that apply in developed market economies, must be aimed at the establishment of a single financial market in the region, for a free flow of capital, and thus faster development of each individual market, the exchange of information relating to trading and prices. It is necessary to compromise strategy to strength domestic stock market, and their connection with other markets in the region. The partnership should ensure that regional and matriculation markets are focused on servicing the needs of major regional and international interest groups - institutional and retail investors, issuers and investment companies.

The issue of ethics has emerged in the economic literature as a result of numerous scandals that have affected the financial markets, especially since the "Enron" affair. Beyond the "dishonest" behaviors of financial players, which have... more

The issue of ethics has emerged in the economic literature as a result of numerous scandals that have affected the financial markets, especially since the "Enron" affair. Beyond the "dishonest" behaviors of financial players, which have probably always existed, it is in the context of liberalization and financial globalization that it is now necessary to place the question of ethics, not from a moralistic point of view, but in terms of economic efficiency and "good" governance.

Economic development needs social and structural changes more than economic growth. This aim remains the hope of all developing countries. They are looking for the best way to reach durable development in a context of financial... more

Economic development needs social and structural changes more than economic growth. This aim remains the hope of all developing countries. They are looking for the best way to reach durable development in a context of financial liberalization where inequalities become deeper. Microfinance has been the favour way of financing human development since two decades for multiple reasons. This paper deals with micro-credit advantages in financing poor people through the Tunisian case. We aim at underling his worth in reducing poverty and creating employment.

This paper provides a survey of the recent progress in the literature of financial development and economic growth. The survey highlights that most empirical studies focus on either testing the role of financial development in stimulating... more

This paper provides a survey of the recent progress in the literature of financial development and economic growth. The survey highlights that most empirical studies focus on either testing the role of financial development in stimulating economic growth or examining the direction of causality between these two variables. Although the positive role of finance on growth has become a stylized fact, there are some methodological reservations about the results from these empirical studies. Several key issues unresolved in the literature are highlighted. The paper also points to several directions for future research.

The financial liberalisation process in Nepal started in 1984. Since then, various liberalisation measures have been implemented in order to widen and deepen the financial system. Some policy instruments were aimed at increasing the... more

The financial liberalisation process in Nepal started in 1984. Since then, various liberalisation measures have been implemented in order to widen and deepen the financial system. Some policy instruments were aimed at increasing the competition and efficiency in the financial ...

This paper attempts to shed some light on the role of financial sector policies in generating new knowledge, drawing on the experience of one of the fastest growing and largest developing countries. Using time series data for India over... more

This paper attempts to shed some light on the role of financial sector policies in generating new knowledge, drawing on the experience of one of the fastest growing and largest developing countries. Using time series data for India over the period 1963–2005, the results indicate that interest rate restraints help generate ideas. Other financial repressionist policies, in the form of high reserve and liquidity requirements, as well as significant directed credit controls, appear to have a dampening effect on ideas production. These results lend some support to the argument that some form of financial sector reforms may help stimulate economic growth via increasing technological innovation.

The aim of the study was to ascertain the effect of liberalising the Nigerian financial system on credit components in the private sector of the economy, therein investigating the possibility of credit crunch. Employing data from 1970 to... more

The aim of the study was to ascertain the effect of liberalising the Nigerian financial system on credit components in the private sector of the economy, therein investigating the possibility of credit crunch. Employing data from 1970 to 2009, sourced from the Central Bank of Nigeria Statistical Bulletins, on an Autoregressive Distributed Lag (ARDL) Model to test for the long and short run impacts of financial liberalization and the presence of credit crunch in the private sector,
the results revealed that liberalising the Nigerian financial system had boomerang effects on the credits allocated to the sub-sector in the long run (except for mining and quarrying), and in the short run, financial liberalization was in all insignificant and negative. On investigating the presence of credit crunch in the long and short run, the results lead to the conclusion that Deposit Money Banks (DMBs) in Nigeria had a strong discriminating credit behaviour towards the real
sectors (Agriculture, Manufacturing and Mining and Quarrying) and the SMEs, as credit crunch was present in these sectors in both the short and long run as indicated by the inverse relationship between increasing deposit liabilities that make up savings and the credit that flows to these sub-sectors. However, their preference was observed in the significant positive flow of savings in form of credits to services, real estate, commerce and others (private individuals, professional, and government). Suggesting that credit crunch does not exist in this sectors as reflected when aggregate credit is reported.

Incorporating the extra risky stocks in portfolios can lead to realisation of extra returns. Due to financial liberalisation, there are huge opportunities of investment in Asian stock markets as these markets have gone through a... more

Incorporating the extra risky stocks in portfolios can lead to realisation of extra returns. Due to financial liberalisation, there are huge opportunities of investment in Asian stock markets as these markets have gone through a considerable expansion. In large number of empirical studies of risk return analysis, it is observed that economic stability and good perspectives have been key assets for the development of emerging markets. Thus, emerging capital markets are becoming increasingly important for institutional as well as individual investors. Liberalisation of financial systems in these emerging Asian markets has attracted domestic and foreign institutional investors to diversify their funds across the markets and reduce their portfolio risk. To examine the important aspects of investment strategy under risk and uncertainty, we have used stock returns of five major stock markets of emerging economies, namely, China, South Korea, Taiwan, India and Malaysia. The daily stock prices for the period January 2011 to July 2016 is used to study the impact of European sovereign-debt crisis and Chinese economic reform as well as currency devaluation on selected emerging markets. In this research, we have carried out a detail autoregressive conditional heteroskedasticity (ARCH) and its generalised models to estimate conditional and asymmetric volatilities. Engle's Lagrange Multiplier (LM) test is used to confirm long periods of time with no evidence of ARCH effects as a diagnostic testing of fitted models.