Impact of Financial Liberalisation on Stock Market Liquidity
Impact of Financial Liberalisation on Stock Market Liquidity

Author: Jess Lee

Publisher:

Published: 2009

Total Pages: 22

ISBN-13:

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This paper assesses the impact of the recent financial reforms in China. Following the country's accession to the World Trade Organization, financial liberalisation has picked up considerable momentum. Measures introduced encompass deregulation in the banking sector and refinements in various financial markets, as well as allowing more freedom for Chinese and foreign investors to participate and interact domestically and overseas. Compared to other studies on financial liberalisation, this study focuses on a relatively narrower aspect of financial reforms namely, the impact on stock market liquidity. Using a panel data set drawn from the Shanghai stock market, we find a positive and significant liquidity impact associated with the recent round of measures, which reflects not only an improvement in capital allocation efficiency in China's equity market but, from a financial stability point of view, also a reduction in its vulnerability. The finding also provides evidence on one of the important channels in which financial liberalisation can be transformed into economic growth over time.

The Dynamics of Emerging Stock Markets
The Dynamics of Emerging Stock Markets

Author: Mohamed El Hedi Arouri

Publisher: Springer Science & Business Media

Published: 2009-12-24

Total Pages: 214

ISBN-13: 3790823899

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Emerging markets have received a particular attention of academic researchers and practitioners since they decided to open their domestic capital markets to foreign participants about three decades ago. At the same time, we remark that theoretical and empirical research in emerging stock markets has been particularly challenged by their fast changes in nature and size under the effects of financial liberalization and reforms. This evolving feature has particularly led to a commensurate increase in sophistication of modeling techniques used for understanding financial markets. In this spirit, the book aims at providing the audience a comprehensive understanding of emerging stock markets in various aspects using modern financial econometric methods. It addresses the empirical techniques needed by economic agents to analyze the dynamics of these markets and illustrates how they can be applied to the actual data. On the other hand, it presents and discusses new research findings and their implications.

Finance, Financial Sector Policies, and Long-run Growth
Finance, Financial Sector Policies, and Long-run Growth

Author: Asli Demirguc-Kunt

Publisher: World Bank Publications

Published: 2008

Total Pages: 82

ISBN-13:

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Abstract: The first part of this paper reviews the literature on the relation between finance and growth. The second part of the paper reviews the literature on the historical and policy determinants of financial development. Governments play a central role in shaping the operation of financial systems and the degree to which large segments of the financial system have access to financial services. The paper discusses the relationship between financial sector policies and economic development.

Interest Rate Liberalization
Interest Rate Liberalization

Author: Mr.Bart Turtelboom

Publisher: International Monetary Fund

Published: 1991-12-01

Total Pages: 46

ISBN-13: 1451939183

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This paper undertakes a survey of theoretical considerations and an analysis of the experience of five African countries with interest rate liberalization. Despite substantial progress in monetary policy reforms, liberalization has only partially affected the level and variability of interest rates. Several factors—macroeconomic instability, oligopolistic financial markets, the absence of developed capital markets, as well as the sequencing of the liberalization programs and the asymmetric availability of information—explain the increase in the spread between lending and deposit rates as well as the rather inflexible pattern of interest rates during the transition to a market-based financial system.

Capital Market Liberalization and Development
Capital Market Liberalization and Development

Author: José Antonio Ocampo

Publisher: OUP Oxford

Published: 2008-05-01

Total Pages: 388

ISBN-13: 0191528153

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Capital market liberalization has been a key battle in the debate on globalization for much of the previous two decades. Many developing countries, often at the behest of international financial institutions such as the IMF, opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that characterized the 1980s and 1990s and in doing so exposed their economies to increased risk and volatility. Now with even the IMF acknowledging the risks inherent in capital market liberalization, the central intellectual battle over the effects of capital market liberalization has for the most part ended. Though this new understanding of the consequences of capital market liberalization is reshaping many policy discussions among academics and international institutions, ideological and vested interests remain. Critical policy debates also remain, such as how much government should intervene and what tools are available. Although capital market liberalization might not produce the promised benefits, many economists and policymakers still worry about the costs of intervention. Do these costs exceed the benefits? What are the best kinds of interventions, under what circumstances? To answer these questions, we have to understand why capital market liberalization has failed to enhance growth, why it has resulted in greater instability, why the poor appear to have borne the greatest burden, and why the advocates of capital market liberalization were so wrong. Bringing together some of the leading researchers and practitioners in the field, this volume provides an analysis of both the risks associated with capital market liberalization and the alternative policy options available to enhance macroeconomic management.

Experiences with Financial Liberalization
Experiences with Financial Liberalization

Author: K. L. Gupta

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 283

ISBN-13: 9401153701

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Experiences with Financial Liberalization provides a broad spectrum of policy experiences relating to financial liberalization around the globe since the 1960s. There is a sizable body of theoretical and aggregative empirical literature in this area, but there is little work documenting and analyzing the experiences of individual countries and/or sets of countries. This book is divided into four parts by geographical region - Africa, Asia and Latin America, Central and Eastern Europe, and the Middle East. Aggregative econometric studies cannot substitute for country-wide studies in allowing the researcher to draw lessons for the future, and this volume adds to this relatively small body of literature.

Financial Liberalization and Economic Development in Korea, 1980-2020
Financial Liberalization and Economic Development in Korea, 1980-2020

Author: Yung Chul Park

Publisher: Harvard University Press

Published: 2021-03-30

Total Pages: 375

ISBN-13: 9780674251281

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Korea's financial development has been a tale of liberalization and opening but the new system has failed to steer the country away from financial crises. This study analyzes the changes in the financial system and finds that financial liberalization has contributed little to grow and stabilize the Korean economy.

Financial Markets Liberalisation and the Role of Banks
Financial Markets Liberalisation and the Role of Banks

Author: Vittorio Conti

Publisher: Cambridge University Press

Published: 1993-02-04

Total Pages: 400

ISBN-13: 0521419824

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Following years of control and regulation, there has been a massive trend towards the liberalisation of financial markets. This volume provides an analysis of this process and considers likely future developments. It is divided into three parts: the first covers the behaviour of households and firms; the second includes papers on stock, bond and currency markets; and the third part analyses the behaviour and performance of financial intermediaries, particularly banks. The topics examined range from the demand for personal and corporate credit and the allocation of savers' wealth, to innovations in securities and services traded in financial markets, and their regulation. The essays represent a blend of both theoretical and empirical work, the latter focusing in particular on Europe and the recent integration of financial markets on the continent. Discussions of the essays are provided by some of the world's leading financial economists.