Report on Financial Liberalization, Bank Crisis and Growth

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:

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.




Leave a Reply

Your email address will not be published. Required fields are marked *