Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
963186 | Journal of International Financial Markets, Institutions and Money | 2012 | 14 Pages |
Abstract
⺠Multiple equilibria explain why some countries remain trapped at the margins of the global financial system. ⺠The complex relationship between financial globilization and institutions may result in multiple equilibria. ⺠Panel data on foreign assets and liabilities confirms the existence of multiple equilibria in a dynamic setting. ⺠Controlling for institutional quality generally reduces the number of equilibria. ⺠Capital account liberalization is risky when the institutional setup is poor, but has a large potential payoff.
Related Topics
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Authors
Bjorn Van Campenhout, Danny Cassimon,