Financial Liberalization, Fiscal Prudence and Growth: Panel Evidence from 1980–2003

Alper, C. Emre; Cakici, S. Meral

doi:10.1007/s11079-008-9094-4

Cited by 6 publications

(4 citation statements)

References 28 publications

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“…Similar to samples in many macroeconomic studies focusing on a large number of countries, our sample is unbalanced with different number of cross sectional units over time (Barro, 1998;Alper & Cakici, 2009;Fosu, 2009). U.S., Canada, and West European countries in general are present in all three subsamples and the number of less developed countries included does rise as data availability improves and as new countries form.…”

Section: Discussionmentioning

confidence: 99%

“…Instead, data from the Federal Republic of Germany (the West Germany) as well as later the reunited nation of Germany are reported under "Germany." In our paper, we follow previous studies and keep as many countries in our sample as data availability allows without making adjustments such as dropping certain observations or interpolation of new data points (Alper & Cakici, 2009;Barro, 1998;Fosu, 2009). 7 Table 3 presents the correlation matrix of variables used in our cross-sectional regressions.…”

Section: (C) Data and Samplementioning

confidence: 99%

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International Comovement of Economic Fluctuations: A Spatial Analysis

2015

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We consider the comovement of economic volatility across multiple countries. Using spatial models with data from 187 countries over the period of 1960-2007, we find a strong spatial comovement of economic volatility. More interestingly, the effect of geographical proximity on economic volatility comovement is strongest during the period of international shocks (1973-86), but almost disappears over the globalization era . By way of contrast, the influence of trade relations in determining the comovement of economic volatility is significant over 1987-2007.

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Section: Discussionmentioning

confidence: 99%

Section: (C) Data and Samplementioning

confidence: 99%

International Comovement of Economic Fluctuations: A Spatial Analysis

2015

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“…There is a growing body of evidence showing that the expansion of a country's financial sector promote its economic growth (see for instance Demirguc-Kunt and Maksimovic 1998;King and Levine 1993;Jayaratne and Strahan 1996;Rajan and Zingales 1998;Alper and Cakici 2009;Fidrmuc et al 2015;Durusu-Ciftci et al 2017;Asteriou andSpanos 2019). However, Levine (1997) argued that our understanding of long-run economic growth will be limited until we understand the evolution and functioning of financial systems.…”

Section: Introductionmentioning

confidence: 99%

Financial Development, Political Instability, Trade Openness and Growth in Brazil: Evidence from a New Dataset, 1890-2003

et al. 2022

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What is the relationship between financial development, political instability, trade openness and economic growth and how does it change over time? This paper examines these links using a new econometric approach and unique data set. In this paper, we apply the logistic smooth transition model (LST) to annual data for Brazil from 1890 to 2003. The main finding is that financial development has a time-varying effect on economic growth, which depends significantly on (jointly estimated) trade openness thresholds. In addition, political instability displays a negative effect on growth whereas trade openness a positive one. Finally, our estimates show that in 56% of the years in which financial development has a ‘below the mean’ effect, we find that trade openness experiences a substantial ‘above the mean’ change.

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“…In a follow-up paper, Kose et al (2011) argue that there are certain "threshold" levels of financial and institutional development that an economy needs to attain in order to be able to enjoy the benefits from financial liberalization. 6 Alper and Cakici (2009) analyze the impact of increasing financial liberalization on economic growth using a panel data set of 75 countries covering the period 1980-2003. Authors show that financial liberalization has significantly positive effect on economic growth only when it is accompanied by fiscal prudence, which is proxied by overall budget balance.…”

Section: Introductionmentioning

confidence: 99%