The literature has shown that it is hard to …find unambiguous evidence that financial openness yields an improvement in economic performance, particularly at the macro level. One of the major problems in empirical work is the bundling of …financial openness with a potential host of other growth-friendly reforms, and the endogeneity of the liberalization decision itself. Nonetheless, policymakers (in emerging and developing economies) have displayed a remarkable revealed preference for …financial openness, and the trend is likely to continue (Obstfeld, 2007). Accordingly, the underlying question this book has aimed to answer, is why this revealed preference?

economic growth, financial markets
J.F. François (Joseph) , J.G.M. van Marrewijk (Charles)
Erasmus University Rotterdam , Thela Thesis, Amsterdam
Tinbergen Instituut Research Series
Erasmus School of Economics

Garita, G.A. (2008, September 18). Financial Market Liberalization and Economic Growth (No. 426). Tinbergen Instituut Research Series. Thela Thesis, Amsterdam. Retrieved from