Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962860 | Journal of International Economics | 2007 | 23 Pages |
Abstract
Studying the relation between equity market liberalization and imports of capital goods, we examine one channel through which international financial integration can promote growth. For the period 1980-1997, we find that after controlling for other policies and fundamentals, stock market liberalizations are associated with a significant increase in the share of imports of machinery and equipment. We hypothesize this can be attributed to the consequences of financial integration, which allows access to foreign capital, and provide evidence consistent with this channel. Our results suggest that increased access to international capital allows countries to enjoy the benefits embodied in capital goods.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Laura Alfaro, Eliza Hammel,