Open AccessPosted Content
How Interest Rates Changed Under Financial Liberalization - a Cross-Country Review
TLDR
Harrison, Rutherford, and Tarr as mentioned in this paper examined Chile's strategy of negotiating bilateral free trade agreements with all of its significant trading partners and evaluated the Free Trade Agreement of the Americas (FTAA) and global free trade.Abstract:
July 2001 Among Chile's bilateral regional agreements, only Chile's agreements with "Northern" partners provide enough market access to offset the costs to Chile of trade diversion. Because of preferential market access, however, "additive regionalism" is likely to provide Chile with far more gains than the static welfare gains from unilateral free trade. At least one partner country loses from each of the regional trade agreements considered in this study, and excluded countries always lose. The Free Trade Agreement of the Americas (FTAA) produces gains for almost all the member countries, but the European Union is a big loser. Countries of the Americas gain more in aggregate from global free trade than from the FTAA. Using a multisector, multicountry, computable general equilibrium model, Harrison, Rutherford, and Tarr examine Chile's strategy of negotiating bilateral free trade agreements with all of its significant trading partners (referring to this policy as additive regionalism). They also evaluate the Free Trade Agreement of the Americas (FTAA) and global free trade. Among Chile's bilateral regional agreements, only Chile's agreements with "Northern" partners provide enough market access to offset the costs to Chile of trade diversion. Because of preferential market access, however, additive regionalism is likely to provide Chile with many times as many gains as the static welfare gains from unilateral free trade. Harrison, Rutherford, and Tarr find that at least one partner country loses from each of the regional trade agreements they consider, and excluded countries as a group always lose. They estimate that the FTAA produces large welfare gains for the members, with the European Union being the big loser. Gains to the world from global free trade are estimated to be at least 36 times greater than gains from the FTAA. Even countries of the Americas in aggregate gain more from global free trade than from the FTAA. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to examine the impact of regional trade arrangements on development and poverty reduction. David Tarr may be contacted at dtarr@worldbank.org.read more
Citations
More filters
Journal ArticleDOI
Comparing early warning systems for banking crises
E. Philip Davis,Dilruba Karim +1 more
TL;DR: In this article, the authors assess the logit and signal extraction EWS for banking crises on a comprehensive common dataset and suggest that logit is the most appropriate approach for global EWS and signal extractor for country-specific EWS.
Journal ArticleDOI
Financial resource availability and corporate social responsibility expenditures in a sub-Saharan economy: The institutional difference hypothesis
TL;DR: In this article, the authors argue that there exists a negative relationship between financial resource availability and CSR expenditures for firms in Ghana, a sub-Saharan African emerging economy, and use lagged data from the Ghana Investment Promotion Centre and find that Return on Sales, Return on Equity, and Net Profitability were consistently associated with lower CSR expenditure.
Journal ArticleDOI
Financial liberalization and banking crises in emerging economies
TL;DR: The authors developed a dynamic explanation by modelling the evolution of a newly-liberalized bank's opportunities and incentives to take on risk over time, revealing that even if a banking system is well-designed, in the sense of having good long-run properties, many countries will enjoy an initial period of rapid, low-risk growth and then enter a period with an elevated risk of banking crisis.
Journal ArticleDOI
Issues in Capital Account Convertibility in Developing Countries
TL;DR: In this paper, the pace, sequencing and preconditions of capital account liberalisation are examined, drawing lessons from the experience of twelve countries, and focusing on the interrelationships between open capital and current accounts, the financial sector and the conduct of macro policies.
Stopping "Hot Money" or Signaling Bad Policy? Capital Controls and the Onset of Currency Crises
TL;DR: In this article, the authors investigate the impact of restrictions on international capital flows and other payments controls on the likelihood of currency crises and find that countries imposing capital restrictions are sending a "bad signal" to markets, in turn increasing the likelihood for a net capital outflow and a currency crisis.
References
More filters
Journal ArticleDOI
Comparing early warning systems for banking crises
E. Philip Davis,Dilruba Karim +1 more
TL;DR: In this article, the authors assess the logit and signal extraction EWS for banking crises on a comprehensive common dataset and suggest that logit is the most appropriate approach for global EWS and signal extractor for country-specific EWS.
Journal ArticleDOI
Financial resource availability and corporate social responsibility expenditures in a sub-Saharan economy: The institutional difference hypothesis
TL;DR: In this article, the authors argue that there exists a negative relationship between financial resource availability and CSR expenditures for firms in Ghana, a sub-Saharan African emerging economy, and use lagged data from the Ghana Investment Promotion Centre and find that Return on Sales, Return on Equity, and Net Profitability were consistently associated with lower CSR expenditure.
Journal ArticleDOI
Financial liberalization and banking crises in emerging economies
TL;DR: The authors developed a dynamic explanation by modelling the evolution of a newly-liberalized bank's opportunities and incentives to take on risk over time, revealing that even if a banking system is well-designed, in the sense of having good long-run properties, many countries will enjoy an initial period of rapid, low-risk growth and then enter a period with an elevated risk of banking crisis.
Journal ArticleDOI
Issues in Capital Account Convertibility in Developing Countries
TL;DR: In this paper, the pace, sequencing and preconditions of capital account liberalisation are examined, drawing lessons from the experience of twelve countries, and focusing on the interrelationships between open capital and current accounts, the financial sector and the conduct of macro policies.
Stopping "Hot Money" or Signaling Bad Policy? Capital Controls and the Onset of Currency Crises
TL;DR: In this article, the authors investigate the impact of restrictions on international capital flows and other payments controls on the likelihood of currency crises and find that countries imposing capital restrictions are sending a "bad signal" to markets, in turn increasing the likelihood for a net capital outflow and a currency crisis.