Does Financial Liberalization Improve the Allocation of Investment?: Micro Evidence from Developing Countries

Arturo Galindo, Fabio Schiantarelli and Andrew Weiss

No 1434, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: In this paper, It has been addressed this question using firm-level panel data from 12 developing countries. It was also developed a summary index of the efficiency of investment allocation that measures whether, and to what extent, investment funds are going to firms with a higher marginal return to capital. Then it was examined the relationship between this index and various measures of financial liberalization. The results suggested that in the majority of cases financial reform has led to an increase in the efficiency with which investment funds are allocated.

Keywords: developing countries; WP-467; micro evidence; investment; financial liberalization (search for similar items in EconPapers)
Date: 2002-04
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Does financial liberalization improve the allocation of investment?: Micro-evidence from developing countries (2007)
Working Paper: Does Financial Liberalization Improve the Allocation of Investment? Micro Evidence from Developing Countries (2005)
Working Paper: Does Financial Liberalization Improve the Allocation of Investment? Micro Evidence from Developing Countries (2003)
Working Paper: Does Financial Liberalization Improve the Allocation of Investment?: Micro Evidence from Developing Countries (2002)
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