Abstract
Financial liberalization has been one of the key trends characterizing the post-Bretton Woods era, with decreasing capital controls and an increasing participation of developing countries in international financial markets in recent decades. More broadly, domestic financial development, measured in terms of liquid liabilities or stock market capitalization, has risen dramatically over the same period. By using Bayesian Model Averaging (BMA) and General-to-specific (Gets) approaches, Chapter 2 examines the long-run determinants of financial development. However, what are the factors directly stimulating governments to liberalize the financial sector, aimed at enhancing financial development? Building on the framework of Abiad and Mody (2005) (AM hereafter), this chapter attempts to answer this question and to provide a more comprehensive view of the political economy of financial reform.
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© 2011 Yongfu Huang
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Huang, Y. (2011). Financial Reforms for Financial Development. In: Determinants of Financial Development. Palgrave Macmillan, London. https://doi.org/10.1057/9780230302495_5
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DOI: https://doi.org/10.1057/9780230302495_5
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32415-6
Online ISBN: 978-0-230-30249-5
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