TY  - JOUR
AU  - Ranciere,Romain
AU  - Tornell,Aaron
AU  - Westermann,Frank
TI  - Decomposing the Effects of Financial Liberalization: Crises vs. Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12806
PY  - 2006
Y2  - December 2006
UR  - http://www.nber.org/papers/w12806
L1  - http://www.nber.org/papers/w12806.pdf
N1  - Author contact info:
Romain Ranciere
International Monetary Fund
Research Department, 9-612
700 19th Street NW
Washington, DC 20431
Tel: 202 6238675
E-Mail: romainranciere@gmail.com

Aaron Tornell
Department of Economics
UCLA
405 Hilgard Ave, Bunche Hall #8283
Los Angeles, CA  90095-1477
Tel: 310/794-1686
Fax: 310/825-9528
E-Mail: tornell@econ.ucla.edu

Frank Westermann
Department of Economics
Rolandstr. 8
49069 Osnabrueck, Germany
E-Mail: Frank.Westermann@uni-osnabrueck.de
AB  - We present a new empirical decomposition of the effects of financial liberalization on economic growth and on the incidence of crises. Our empirical estimates show that the direct effect of financial liberalization on growth by far outweighs the indirect effect via a higher propensity to crisis. We also discuss several models of financial liberalization and growth whose predictions are consistent with our empirical findings.
ER  -