2021, Vol. 2, Issue 1, Part B
Financial liberalization: Conditional convergence or divergence in the rates of growth of emerging economies and developed countries
Author(s): Archi Bhatia
Abstract: The present study empirically tests whether financial liberalization is associated with greater conditional convergence separately, for the set of nine developed countries and nine emerging economies over a period of 1971 to 2013. We attempt to answer whether a relatively more financially liberalized country which has a lower initial real PCGDP acquires faster rate of growth and converges to its own steady state value. Using panel data models, we inspect IFI in the broad context of liberalization of capital account, equity markets and banking sector and estimate a two-step GMM. While we do not find any convergence in our set of developed countries, we find strong support in favour of conditional convergence in emerging economies.
Pages: 120-129 | Views: 134 | Downloads: 52
Download Full Article: Click Here
How to cite this article:
Archi Bhatia. Financial liberalization: Conditional convergence or divergence in the rates of growth of emerging economies and developed countries. Asian J Manage Commerce 2021;2(1):120-129.
Other Journals