Does Openness to International Financial Flows Raise Productivity Growth?

Does Openness to International Financial Flows Raise Productivity Growth?

This paper provides a comprehensive analysis of the relationship between financial openness and total factor productivity (TFP) growth using an extensive dataset that includes various measures of productivity and financial openness for a large sample of countries. We find that de jure capital accoun...

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Bibliographic Details
Main Author: Prasad, Eswar
Other Authors: Terrones, Marco, Kose, M. Ayhan
Format: eBook
Language:English
Published: Washington : International Monetary Fund, 2008.
Series:IMF Working Papers.
Subjects:
Economic development > Econometric models.
Fiscal policy.
International finance.
Economic development > Econometric models
Fiscal policy
International finance
Online Access:Click for online access
Description
Summary:This paper provides a comprehensive analysis of the relationship between financial openness and total factor productivity (TFP) growth using an extensive dataset that includes various measures of productivity and financial openness for a large sample of countries. We find that de jure capital account openness has a robust positive effect on TFP growth. The effect of de facto financial integration on TFP growth is less clear, but this masks an important and novel result. We find strong evidence that FDI and portfolio equity liabilities boost TFP growth while external debt is actually negatively.
Physical Description:1 online resource (65 pages)
Bibliography:Includes bibliographical references.
ISBN:9781452759166
1452759162
1451915535
9781451915532
Source of Description, Etc. Note:Print version record.

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