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Financial Liberalization and Stability of the Financial System in Emerging Markets: The Institutional Dimension of Financial Crises

Author

Listed:
  • Jean-Pierre Allegret
  • Bernard Courbis

    (GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Dulbecco

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

Abstract

Emerging economies, which have implemented since the end of the 80's a process of financial liberalization, are confronted at the same time to banking crisis. The latter highlight the role played by the institutional framework in the process of financial liberalization. The objective of this paper is to go through the usual alternative too much/ too little market in order to explain that the success of any liberalization process relies on the complementarity between market and intermediation. Institutions defined as rule-following behavior represented the cornerstone of such an evolution. The point is that the solution to financial instability is to be found within the institutional dynamics in which emerging economies may benefit from intermediation in order to enforce the market process.

Suggested Citation

  • Jean-Pierre Allegret & Bernard Courbis & Philippe Dulbecco, 2003. "Financial Liberalization and Stability of the Financial System in Emerging Markets: The Institutional Dimension of Financial Crises," Post-Print hal-01659729, HAL.
    • Handle: RePEc:hal:journl:hal-01659729
    Note: View the original document on HAL open archive server: https://hal.science/hal-01659729
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    References listed on IDEAS

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    Cited by:

    1. Samia Nasreen & Sofia Anwar, 2020. "Financial Stability And The Role Of Economic And Financial Integration In South Asia: Evidence From Time-Series Data," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(02), pages 303-333, March.
    2. Shivangi JAISWAL & Dr. N. KUBENDRAN, 2021. "Capital account liberalisation in India: Volatility of capital flows and selective policy issues," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(626), S), pages 201-218, Spring.
    3. Samia Nasreen & Sofia Anwar, 2017. "Financial Stability And The Role Of Economic And Financial Integration In South Asia: Evidence From Time-Series Data," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(02), pages 303-333, March.
    4. Jean-Pierre Allegret & Philippe Dulbecco, 2000. "Global governance versus domestic governance: what roles of international institutions ?," Post-Print halshs-00146958, HAL.
    5. Jean-Pierre Allegret & Philippe Dulbecco, 2007. "The institutional failures of International Monetary Fund conditionality," The Review of International Organizations, Springer, vol. 2(4), pages 309-327, December.
    6. Philippe DULBECCO, 2000. "The Dynamics of the Institutional Change and the Market Economy: An Austrian Analysis," Working Papers 200010, CERDI.
    7. Navaz Naghavi & Wee-Yeap Lau, 2014. "Exploring the nexus between financial openness and informational efficiency -- does the quality of institution matter?," Applied Economics, Taylor & Francis Journals, vol. 46(7), pages 674-685, March.
    8. Jean-Pierre Allegret & Philippe Dulbecco, 2009. "Enforcing the IMF in the Global Economy: An Institutional Analysis," Chapters, in: Claude Gnos & Louis-Philippe Rochon (ed.), Monetary Policy and Financial Stability, chapter 6, pages 117-133, Edward Elgar Publishing.

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    More about this item

    Keywords

    emerging markets; financial crisis; financial liberalization; market and institutions JEL codes: F3; G0;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G - Financial Economics

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