In the last two decades, an increasing number of countries have eliminated controls on international capital movements. However, the global economic crises of recent years have led many economists to reconsider the beneficial effects of financial liberalization on economic performance.
Although the issue has been widely debated, there are no conclusive results on the effects of financial integration on growth.
In theory, international financial liberalization softens financing constraints and improves risk-sharing, thereby fostering investments.
Some More Reports:
- Report on GSM Security
- Report on Culture Entry Barriers for SMEs
- Report on Coin Based Mobile Charger
- Report on Employee Management System
- Report on the Ayurvedic Medicine Industry
It may also have a positive impact on the functioning and development of financial systems, and on corporate governance.
These arguments suggest that we should expect a positive relation between international financial liberalization and economic growth.