Macroeconomic aspects of financial liberalization

Abstract

The positive and the negative macroeconomic aspects of the financial liberalization for the developing and emerging economies are well described in the present literature. But it is not easy to clearly summarize the final effects of the financial integration on the certain country. For instance the argument about the growth benefits of the capital account liberalization is likely to be inadequate considering the financial crises in the emerging markets at the end of the last century. On the other hand, many authors (especially in the financial literature) report that the equity market liberalizations help to significantly boost the economic growth. There are also some examples on the microeconomic level (firm level or industry level) when the international financial integration brings certain benefits to the integrated enterprises and the capital flows restriction leads to the distortionary effects. In the paper we analyze the macroeconomic effects of the capital flows liberalization.Savremena literatura detaljno opisuje pozitivne i negativne aspekte finansijske liberalizacije u zemljama u razvoju i privredama sa trzistem u razvoju. Uprkos tome, nije jednostavno na jasan nacin sumirati konacne efekte koje finansijska integracija ima na odredjene zemlje. Na primer, neadekvatan je argument koji istice razvojne koristi od liberalizacije kapitalnih racuna imajuci u vidu finansijske krize u zemljama u razvoju krajem proslog veka. S druge strane, mnogi autori (narocito u oblasti finansijske literature) isticu da liberalizacija trzista akcija znacajno doprinosi ekonomskom rastu. Prisutni su i primeri na mikroekonomskom nivou (na nivou preduzeca ili industrijske grane) gde je medjunarodna finansijska integracija donela odredjene koristi integrisanim preduzecima, pri cemu su restrikcije tokova kapitala izazvale distorzione efekte. Ovaj rad izucava makroekonomske efekte liberalizacije tokova kapitala.