چه مسائلی برای توسعه مالی مهم است؟ کنترل سرمایه، موسسات، و تعاملات

We investigate whether financial openness leads to financial development after controlling for the level of legal development using a panel encompassing 108 countries over the period 1980 to 2000. We also examine the issue of the optimal sequence of liberalization in both goods and financial markets. Our findings suggest that a higher level of financial openness spurs equity market development only if a threshold level of legal development has been attained. On the issue of sequencing, we find that trade openness is a prerequisite for capital account liberalization while banking system development is a precondition for equity market development.

Recent years have witnessed a surge of interest in issues surrounding globalization, including financial globalization. A series of financial crises in the 1990s rekindled the debates on the effects of removing capital controls, which led many observers to reconsider gains and pains of financial liberalization (Kaminsky and Schmukler, 2001a, Kaminsky and Schmukler, 2001b, Kaminsky and Schmukler, 2002 and Schmukler, 2003).1

We began our empirical investigation by examining the nexus between capital account liberalization and financial development. Our key empirical results suggest that financial openness does contribute to equity market development, but only when a threshold level of general development of legal systems and institutions has been attained. Financial development–measured as activity of the stock market–appears to depend upon capital account openness both individually and in interaction with the level of legal development.33