CREDIT LIBERALIZATION REFORM: A SIMPLE MODEL
This note presents a simple setup of credit liberalization. We find that the effect is not uniform but depends on the level of GDP. In other words, the model predicts that richer countries benefit more than poor countries from opening up their capital account. This finding has important policy implications, as it suggests that developing economies should be cautious when it comes to the liberalization of their capital account.
 Adam, K. 2009. Discussion: Financial Integration, Capital Mobility and Income Convergence”, by Abdul Abiad, Daniel Leigh and Ashoka Mody, Economic Policy, Vol. 58, 289-293, April.
Non-Exclusive License under Attribution 4.0 International Public License (CC BY 4.0):
This ‘Article’ is distributed under the terms of the license CC-BY 4.0., which lets others distribute, remix, adapt, and build upon this article, even commercially, as long as they credit this article for the original creation. ASERS Publishing will be acknowledged as the first publisher of the Article and a link to the appropriate bibliographic citation (authors, article title, volume issue, page numbers, DOI, and the link to the Published Article on ASERS Publishing’ Platform) must be maintained.