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Capital account liberalization and unemployment in industrial countries

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  • Horst Feldmann

Abstract

Using data on 21 industrial countries over 1973 to 2005, this article finds that the liberalization of capital accounts implemented during this period has probably reduced unemployment. The magnitude of the estimated effect is substantial. We control for both endogeneity of capital account regulation and all major determinants of unemployment. The results are robust to variations in specification.

Suggested Citation

  • Horst Feldmann, 2013. "Capital account liberalization and unemployment in industrial countries," Applied Economics Letters, Taylor & Francis Journals, vol. 20(6), pages 566-571, April.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:6:p:566-571
    DOI: 10.1080/13504851.2012.718058
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    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
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    3. Peter Henry, 2007. "Capital Account Liberalization: Theory, Evidence, and Speculation," Discussion Papers 07-004, Stanford Institute for Economic Policy Research.
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    6. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    7. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    8. Dennis P. Quinn & A. Maria Toyoda, 2008. "Does Capital Account Liberalization Lead to Growth?," The Review of Financial Studies, Society for Financial Studies, vol. 21(3), pages 1403-1449, May.
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    Cited by:

    1. Nurullah Gur, 2015. "Financial Integration, Financial Dependence and Employment Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 493-500.

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