Discipline and Freedom in Financial Markets: How regulation and liberalisation influence the gains from finance
(2018) NEKH04 20181Department of Economics
- Abstract (Swedish)
- This paper investigates how the financial sector's institutional characteristics can allow an economy to benefit from financial deepening and limit the negative effects it can have. Specifically, it tests how macroprudential regulation and financial liberalisation affect the shape and behaviour of the finance–growth relationship. This is done by analysing a sample of 55 developing and developed economies from 1973-2008 with a non-linear fixed effects regression model. The results indicate that prudential regulation can have an initial negative effect on growth, which turns positive at high levels of financial development. It is shown that financial liberalisation can affect growth positively, but that it can also exacerbate the negative... (More)
- This paper investigates how the financial sector's institutional characteristics can allow an economy to benefit from financial deepening and limit the negative effects it can have. Specifically, it tests how macroprudential regulation and financial liberalisation affect the shape and behaviour of the finance–growth relationship. This is done by analysing a sample of 55 developing and developed economies from 1973-2008 with a non-linear fixed effects regression model. The results indicate that prudential regulation can have an initial negative effect on growth, which turns positive at high levels of financial development. It is shown that financial liberalisation can affect growth positively, but that it can also exacerbate the negative effects of too much finance. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8947386
- author
- Adolfsson, Tobias LU
- supervisor
- organization
- course
- NEKH04 20181
- year
- 2018
- type
- M2 - Bachelor Degree
- subject
- keywords
- financial development, regulation, liberalisation, institutions, economic growth
- language
- English
- id
- 8947386
- date added to LUP
- 2018-07-05 10:41:55
- date last changed
- 2018-07-05 10:41:55
@misc{8947386, abstract = {{This paper investigates how the financial sector's institutional characteristics can allow an economy to benefit from financial deepening and limit the negative effects it can have. Specifically, it tests how macroprudential regulation and financial liberalisation affect the shape and behaviour of the finance–growth relationship. This is done by analysing a sample of 55 developing and developed economies from 1973-2008 with a non-linear fixed effects regression model. The results indicate that prudential regulation can have an initial negative effect on growth, which turns positive at high levels of financial development. It is shown that financial liberalisation can affect growth positively, but that it can also exacerbate the negative effects of too much finance.}}, author = {{Adolfsson, Tobias}}, language = {{eng}}, note = {{Student Paper}}, title = {{Discipline and Freedom in Financial Markets: How regulation and liberalisation influence the gains from finance}}, year = {{2018}}, }