Liberalização financeira, estabilidade macroeconômica e crescimento econômico nos países do BRIC

Abstract

Financial liberalization, macroeconomic policy and economic growth within the BRIC's countries. The objective of this paper is to analyze the relationship between exchange rate regime, capital account convertibility and economic growth in 1990-2007 period within the emerging countries that constitute what has been called BRIC -Brazil, Russia, India and China. Our hypothesis is that economic performance of these countries is the result, at least partially, of the quality of the macroeconomic policy management adopted in each country, in which exchange rate policy, capital account convertibility and the degree of external vulnerability plays a key role.

Capital Flows to BRICS Countries during 2000-2010

“…Thus, these economies present lower peaks of capital inflows and outflows. Following Paula and Barcelos' (2011) conclusions, we find that these countries adopted effective policies for the reduction of external vulnerability. However, India's potential for external vulnerability has increased in recent years due to financial liberalization and tolerance with recurring current account deficits.…”

“…These peaks of volatility in the recent period may also be related to the fact that, lately, Russia has been liberalizing several financial transactions (Paula and Barcelos 2011). The Graph 5 presents the sub-accounts for the second level of openness of the Russian balance of payments.…”

“…It should also be noted that some studies investigate the relationship between exchange rate regime, capital account convertibility and economic performance (such as Barcelos, 2011 andPaula, 2006). Therefore, there is plenty of room for discussion of the dynamics of capital flows to BRICS countries, a topic which has been little explored in the economics literature.…”