Output growth and fluctuation: the role of financial openness

Arbeitspapier

I analyze output growth, volatility, and skewness as the joint outcomes of financial openness. Using an industry panel of 53 countries over 45 years, I find that financial openness increases simultaneously mean growth and the negative skewness of the growth process. The increase in output skewness appears to come from a more negatively skewed distribution of investment, TFP, and new business creation. The growth benefits of financial liberalization are augmented, and its costs associated with higher probability of rare large contractions are mitigated by deep credit markets and by strong institutions. The main result of the paper holds in aggregated data.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 1368

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Business Fluctuations; Cycles ; International Finance: General ; Financial Aspects of Economic Integration ; Economic Growth of Open Economies ; International Financial Markets
• Thema: Development ; Financial openness ; Growth ; skewness ; Volatility

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Popov, Alexander
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/153802
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ