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Does financial openness explain the increase of global imbalances before the crisis of 2008?

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  • Jamel Saadaoui

Abstract

We investigate whether financial openness has played a major role in the evolution of global imbalances over the period before the crisis of 2008. We estimate, with panel regression techniques, the impact of financial openness on medium run trends in current account imbalances for industrialized and emerging countries by using a de jure measure of financial openness and a de facto measure of financial openness. Nowadays, current account imbalances are larger in reason of higher capital mobility. Nevertheless, a large part of imbalances may be considered as unrelated with the evolution of macroeconomic fundamentals.

Suggested Citation

  • Jamel Saadaoui, 2015. "Does financial openness explain the increase of global imbalances before the crisis of 2008?," International Economics, CEPII research center, issue 143, pages 23-35.
  • Handle: RePEc:cii:cepiie:2015-q3-143-2
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    References listed on IDEAS

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    Cited by:

    1. Jamel Saadaoui, 2016. "Post-Brexit FEER," Working Papers of BETA 2016-51, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Jamel Saadaoui, 2018. "Internal Devaluations and Equilibrium Exchange Rates: new evidences and perspectives for the EMU," Applied Economics, Taylor & Francis Journals, vol. 50(59), pages 6364-6381, December.
    3. Florian Morvillier, 2018. "On the impact of the launch of the euro on EMU macroeconomic vulnerability," EconomiX Working Papers 2018-51, University of Paris Nanterre, EconomiX.
    4. repec:wsi:rpbfmp:v:21:y:2018:i:04:n:s0219091518500236 is not listed on IDEAS

    More about this item

    Keywords

    Global imbalances; Financial openness; Panel data;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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