Financial liberalization has been an important component of a wide-ranging economic reform program undertaken by governments of emerging market economies. It is then essential to apprehend its multidimensional aspects for a better understanding of the dynamic behavior of emerging markets over the recent period. The rationale behind this intuition is that financial liberalization concerns a large variety of restrictions which were imposed there.
This chapter aims at reviewing the driving context that shows the necessity of financial liberalization as well as the induced impacts of this reform on the dynamics of emerging stock markets. Precisely, the following topics are particularly discussed: economic rationale for financial liberalization, liberalization methods, dynamics of liberalization process, and economic and financial impacts of liberalization.
Stock Market Foreign Investor Capital Flow Market Integration Financial Liberalization
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