Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9731491 | The Quarterly Review of Economics and Finance | 2005 | 13 Pages |
Abstract
Does deregulation of financial markets speed up capital accumulation and growth? This paper uses a general equilibrium model to analyze the impact of deregulation and financial deepening on the real sector. The model suggests that deregulation and a more developed banking sector prompt firms to increase the capital intensity of production, fostering more rapid growth. Evidence form Latin America provides support for the main result of the model by showing the positive impact of deregulation and financial development on investment.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nader Nazmi,