CREDIT LIBERALIZATION REFORM: A SIMPLE MODEL

  • Aleksandar VASILEV Lincoln International Business School, Lincoln, UK

Abstract

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.

References

[1] Abiad, A., Leigh, D.and Mody, A. 2009. Financial integration, capital mobility, and income convergence, Economic Policy: 241-305, April. Available at: https://www.jstor.org/stable/40272541
[2] Adam, K. 2009. Discussion: Financial Integration, Capital Mobility and Income Convergenceā€, by Abdul Abiad, Daniel Leigh and Ashoka Mody, Economic Policy, Vol. 58, 289-293, April.
Published
2022-12-31
How to Cite
VASILEV, Aleksandar. CREDIT LIBERALIZATION REFORM: A SIMPLE MODEL. Theoretical and Practical Research in the Economic Fields, [S.l.], v. 13, n. 2, p. 163 - 166, dec. 2022. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/7469>. Date accessed: 08 feb. 2023. doi: https://doi.org/10.14505/tpref.v13.2(26).05.