The quality effect: Does financial liberalization improve the allocation of capital?

Journal of Development Economics

Volumn 87, Issue 2, 2008, Pages 270-282

  Abiad, Abdul ^a   Oomes, Nienke ^a   Ueda, Kenichi ^a  

^a INTERNATIONAL MONETARY FUND   (United States)

Author keywords

Allocative efficiency; Financial liberalization; Investment; Tobin's Q

Indexed keywords

ALLOCATIVE EFFICIENCY; CAPITAL FLOW; CREDIT PROVISION; FINANCIAL MARKET; LIBERALIZATION; RESOURCE ALLOCATION;

ASIA; EURASIA; FAR EAST; INDIA; JORDAN; KOREA; MALAYSIA; MIDDLE EAST; SOUTH ASIA; SOUTHEAST ASIA; THAILAND;

EID: 48049124325     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jdeveco.2007.12.002     Document Type: Article

References (28)

1. Abiad A., and Mody A. Financial reform: what shakes it? What shapes it?. American Economic Review 95 1 (2005) 66-88
2. Abiad A., Nienke O., and Kenichi U. The quality effect: does financial liberalization improve the allocation of capital?. A revised version of IMF Working Paper, 04/112 (2007) Available from authors' SSRN website.
3. Albuquerque R., and Hopenhayn H.A. Optimal lending contracts and firm dynamics. Review of Economic Studies 71 2 (2004) 285-315
4. Arellano M., and Bond S. Some tests of specification for panel data: Monte Carlo Evidence and an application to employment equations. Review of Economic Studies 58 2 (1991) 277-297 (April)
5. Bandiera O., Gerard C., Patrick H., and Fabio S. Does financial reform raise or reduce saving?. Review of Economics and Statistics 82 2 (2000) 239-263 (May)
6. Bekaert G., and Harvey C.R. Foreign speculators and emerging equity markets. Journal of Finance 55 (2000) 565-613 (April)
7. Blanchard O., Rhee C., and Lawrence S. The stock market, profit, and investment. Quarterly Journal of Economics 108 1 (1993) 115-136
8. Bond S., and Jason C. Noisy share prices and the Q model of investment. Institute for Fiscal Studies Working Paper 01/22 (2001), Institute for Fiscal Studies, London
9. Bordo M.D., Eichengreen B., Klingebiel D., and Martinez Peria M.S. Financial crises: lessons from the last 120 years. Economic Policy: A European Forum 32 (2001) 51-82 (April)
10. Chari A., and Peter B.H. The invisible hand in emerging markets: discerning or indiscriminate?. University of Michigan Business School Working Paper (2003). http://webuser.bus.umich.edu/achari/achari.htm Available via the Internet: http://webuser.bus.umich.edu/achari/achari.htm.
11. Cho Y.J. The effect of financial liberalization on the efficiency of credit allocation: some evidence from Korea. Journal of Development Economics 29 (1988) 101-110 (July)
12. Demirgüç-Kunt A., and Enrica D. Financial liberalization and financial fragility. In: Gerard C., Patrick H., and Joseph E.S. (Eds). Financial Liberalization: How Far, How Fast? (2001), Cambridge University Press, New York
13. Devereux M.B., and Smith G.W. International risk sharing and economic growth. International Economic Review 35 (1994) 535-550 (August)
14. Djankov S., Caralee M., and Andrei S. Private credit in 129 countries. NBER Working Paper No. 11078 (2005)
15. Galindo A., Schiantarelli F., and Weiss A. Does Financial Liberalization Improve the Allocation of Investment? Micro Evidence From Developing Countries. Journal of Development Economics 83 2 (2007) 562-587 (July)
16. Gomes J. Financing investment. American Economic Review 91 (2001) 1263-1285 (December)
17. Hayashi F. Tobin's marginal q and Average q: a Neoclassical interpretation. Econometrica 50 1 (1982) 213-224
18. Hennessy C.A. Tobin's Q, debt overhang, and investment. Journal of Finance LIX 4 (2004) 1717-1742
19. Jayaratne J., and Strahan P.E. The finance-growth nexus: evidence from bank branch deregulation. Quarterly Journal of Economics 111 3 (1996) 639-670
20. Jovanovic B., and Rousseau P.L. The Q-theory of mergers. American Economic Review: AEA Papers and Proceedings vol. 92 No. 2 (2002) 198-204 (May)
21. Laeven L. Does financial liberalization reduce financing constraints?. Financial Management 21 1 (2003) 5-34
22. Love I. Financial development and financing constraints: international evidence from the structural investment model. Review of Financial Studies 16 2 (2003) 765-791
23. McKinnon R. Money and Capital in Economic Development (1973), Brookings Institution, Washington
24. Obstfeld M. Risk-taking, global diversification, and growth. American Economic Review 84 5 (1994) 1310-1329
25. Sancak C. Financial liberalization and real investment: evidence from Turkish firms. IMF Working Paper, 02/100 (2002), International Monetary Fund, Washington
26. Shaw E.S. Financial Deepening in Economic Development (1973), Oxford University Press, New York
27. Ueda K. Banks as coordinators of economic growth. IMF Working Paper, 06/264 (2006), International Monetary Fund, Washington
28. Wurgler J. Financial markets and the allocation of capital. Journal of Financial Economics 58 (2000) 187-214 (October/November)