The Impact of Capital Market Players’ Exit, Voice and Loyalty on Economic Growth
In analyses of the global money and capital markets, economic discourse is mostly focussed on the movement and flow of capital, giving less emphasis to its role in influencing the formation of institutional frameworks as well as national and international rules, particularly in terms of the impact on economic growth. Based on the concept of exit, voice and loyalty developed by Albert O. Hirschman, this paper examines the effect of capital movement and investors’ voice on economic growth, making use of both macroeconomic tools and linear regression based on the data of European countries and Post-Soviet states. Our results indicate that the de facto exit of capital has a negative effect on economic growth, while the de jure exit of capital to the shadow economy and investors’ voice result in a higher growth rate.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adam, M.C. & Ginsburgh, V., .
"The effects of irregular markets on macroeconomic policy. Some estimates for Belgium,"
CORE Discussion Papers RP
662, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Adam, M. C. & Ginsburgh, V., 1985. "The effects of irregular markets on macroeconomic policy : Some estimates for belgium," European Economic Review, Elsevier, vol. 29(1), pages 15-33.
- Marie Christine Adam & Victor Ginsburgh, 1985. "The effects of irregular markets on macroeconomic policy: some estimates for Belgium," ULB Institutional Repository 2013/1757, ULB -- Universite Libre de Bruxelles.
- Patrick BOLTON & Ernst-Ludwig VON THADDEN, 1996.
"Blocks, Liquidity, and Corporate Control,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
9619, Université de Lausanne, Faculté des HEC, DEEP.
- Barry, Brian, 1974. "Review Article: ‘Exit, Voice, and Loyalty’," British Journal of Political Science, Cambridge University Press, vol. 4(01), pages 79-107, January.
- Williamson, Oliver E, 1976. "The Economics of Internal Organization: Exit and Voice in Relation to Markets and Hierarchies," American Economic Review, American Economic Association, vol. 66(2), pages 369-77, May.
- James H. Anderson & Georges Korsun & Peter Murrell, 1999. "Ownership, exit and voice after mass privatization," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 215-243, March.
- Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
- Dailami, Mansoor, 1999. "Managing risks of capital mobility," Policy Research Working Paper Series 2199, The World Bank.
- Michael J. Hiscox, 2004. "International Capital Mobility And Trade Politics: Capital Flows, Political Coalitions, And Lobbying," Economics and Politics, Wiley Blackwell, vol. 16, pages 253-285, November.
- Bhagwati, Jagdish N. & Brecher, Richard A. & Dinopoulos, Elias & Srinivasan, T. N., 1987. "Quid pro quo foreign investment and welfare : A political-economy-theoretic model," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 127-138, October.
- Frydman, Roman & Pistor, Katharina & Rapaczynski, Andrzej, 1996. "Exit and voice after mass privatization: The case of Russia," European Economic Review, Elsevier, vol. 40(3-5), pages 581-588, April.
- Michael A Witt & Arie Y Lewin, 2007. "Outward foreign direct investment as escape response to home country institutional constraints," Journal of International Business Studies, Palgrave Macmillan, vol. 38(4), pages 579-594, July.
When requesting a correction, please mention this item's handle: RePEc:pfq:journl:v:57:y:2012:i:4:p:474-489. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pál Péter Kolozsi)
If references are entirely missing, you can add them using this form.