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Financial liberalization and economic growth: A meta-analysis

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  • Bumann, Silke
  • Hermes, Niels
  • Lensink, Robert

Abstract

This study provides a systematic analysis of the empirical literature on the relationship between financial liberalization and economic growth by conducting a meta-analysis, based on 441 t-statistics reported in 60 empirical studies. We focus on explaining the heterogeneity of results in our sample in terms of study-, data- and method-specific characteristics. Although our findings indicate that, on average, there is a positive effect of financial liberalization on growth, the significance of this effect is only weak. Moreover, we find that most of the variables that may help explain the heterogeneity of results are insignificant. There are two exceptions. First, studies carried out based on data from the 1970s on average find a statistically less significant relationship between financial liberalization policies and growth (i.e. they report lower t-statistics) as compared to studies using data from the 1980s. Second, studies controlling for the level of development of the financial system report lower t-statistics for the relationship between liberalization and growth.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Money and Finance.

Volume (Year): 33 (2013)
Issue (Month): C ()
Pages: 255-281

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Handle: RePEc:eee:jimfin:v:33:y:2013:i:c:p:255-281

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Web page: http://www.elsevier.com/locate/inca/30443

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Keywords: Financial liberalization; Economic growth; Meta-analysis;

References

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Cited by:
  1. Petra Valickova & Tomas Havranek & Roman Horvath, 2013. "Financial Development and Economic Growth: A Meta-Analysis," William Davidson Institute Working Papers Series wp1045, William Davidson Institute at the University of Michigan.
  2. Gehringer, Agnieszka, 2013. "Financial liberalization, financial development and productivity growth: An overview," Economics Discussion Papers 2013-46, Kiel Institute for the World Economy.
  3. Nazarian, Rafik & Naderi, Esmaeil & Gandali Alikhani, Nadiya & Amiri, Ashkan, 2013. "Long Memory Analysis: An Empirical Investigation," MPRA Paper 45605, University Library of Munich, Germany.
  4. Jérôme Creel & Paul Hubert & Fabien Labondance, 2013. "Financial stability and economic performance," Documents de Travail de l'OFCE 2013-24, Observatoire Francais des Conjonctures Economiques (OFCE).
  5. repec:spo:wpecon:info:hdl:2441/f6h8764enu2lskk9p5296ie95 is not listed on IDEAS

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