Item Details
Skip Navigation Links
   ActiveUsers:1891Hits:20920395Skip Navigation Links
Show My Basket
Contact Us
IDSA Web Site
Ask Us
Today's News
HelpExpand Help
Advanced search

In Basket
  Journal Article   Journal Article
 

ID192408
Title ProperFinancial reforms and capital accumulation in developing economies
Other Title InformationNew data and evidence
LanguageENG
AuthorAn, Zidong
Summary / Abstract (Note)This study uses newly constructed data on structural reforms and private and public capital stock to assess the effects of financial reforms on capital formation in developing economies. We find that while both domestic and external financial reforms are important determinants of capital formation, the former is more influential in middle-income countries (MICs) and the latter in low-income countries (LICs). For LICs, external financial reforms work mostly through attracting FDI. For MICs, within domestic financial reforms, what matters most are measures related to strengthening banking supervision and reducing credit controls. These results are driven by capital formation in the private sector. In addition, these effects are nonlinear, and it is important for a country's policy when it comes to the sequence of implementing domestic and external financial reforms. Given the importance of public investment in decarbonization, this study further discusses the potential impacts of financial reforms on climate change and carbon inequality.
`In' analytical NoteChina Economic Review Vol. 77, Feb 2023: p.101895
Journal SourceChina Economic Review 2023-02 77
Key WordsDeveloping Economies ;  Financial reforms and capital accumulation