Growth and Risk at the Industry-level: The Real Effects of Financial Liberalization

Détails

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Etat: Public
Version: Final published version
ID Serval
serval:BIB_F40B02FBE752
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Growth and Risk at the Industry-level: The Real Effects of Financial Liberalization
Périodique
Journal of Development Economics
Auteur⸱e⸱s
Levchenko  A., Rancière  R., Thoenig  M.
ISSN
0304-3878
Statut éditorial
Publié
Date de publication
07/2009
Peer-reviewed
Oui
Volume
89
Numéro
2
Pages
210-222
Langue
anglais
Résumé
This paper analyzes the effects of financial liberalization on growth and volatility at the industry level in a large sample of countries. We estimate the impact of liberalization on production, employment, firm entry, capital accumulation, and productivity. In order to overcome omitted variables concerns, we employ a number of alternative difference-in-differences estimation strategies. We implement a propensity score matching algorithm to find a control group for each liberalizing country. In addition, we exploit variation in industry characteristics to obtain an alternative set of difference-in-differences estimates. Financial liberalization is found to have a positive effect on both growth and volatility of production across industries. The positive growth effect comes from increased entry of firms, higher capital accumulation, and an expansion in total employment. By contrast, we do not detect any effect of financial liberalization on measured productivity. Finally, the growth effects of liberalization appear temporary rather than permanent.
Mots-clé
Financial liberalization, Growth, Volatility, Industry-level data, Difference-in-differences estimation, Propensity score matching
Web of science
Création de la notice
28/08/2009 12:38
Dernière modification de la notice
21/08/2019 6:11
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