{"id":1608,"date":"2023-02-13T16:19:19","date_gmt":"2023-02-13T16:19:19","guid":{"rendered":"https:\/\/www.fiw.ac.at\/publications\/financial-liberalization-and-institutional-development\/"},"modified":"2023-02-13T16:19:19","modified_gmt":"2023-02-13T16:19:19","slug":"financial-liberalization-and-institutional-development","status":"publish","type":"publication","link":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/","title":{"rendered":"Financial Liberalization and Institutional Development"},"content":{"rendered":"\nThis  paper  empirically  analyzes  the  effects  of  de  jure  financial  opennesson institutional quality as captured by indicators on investment risk,  corruption  level,  impartiality  of  judiciary  system  as  well  as  the  effectiveness  of  bureaucratic  authorities.  Using  a  panel  data  set  of  more than  110  countries  and  a  time  span  from 1984 to 2005, we show that a higher degree of financial openness improves institutional  quality  in  particular  by  reducing  investment  risks.  We  also  study  the  effect of a single liberalization reform on the development of institutional quality.Again,  we  find  evidence  for  the  beneficial  impact  of  financial  liberalization  with the  exception  of  the  level  of  corruption.  We  additionally  show  that  if  financial  liberalization  is  supported  by  simultaneous  politicalliberalization,  the  benign  consequences  of  financial  opening  for  the  institutional  performance  are  even  larger,  while  financial  deregulation  in  former  socialist  countries  tends  to  worsen  institutional quality.\n\n","protected":false},"featured_media":0,"menu_order":0,"template":"","jelcode":[753,103,872],"keyword":[70,874,875,873],"class_list":["post-1608","publication","type-publication","status-publish","hentry","jelcode-d72","jelcode-f02","jelcode-p48","keyword-financial-integration","keyword-institutional-development","keyword-institutional-dimensions","keyword-liberalization-reform"],"acf":{"year":2012,"month":5,"day":"","volume":"","number":"082","pages":64,"reviewed":"0","citeid":"FIW_WP_082","fiwseries":"FIW Working Papers","event":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Financial Liberalization and Institutional Development - FIW<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Liberalization and Institutional Development - FIW\" \/>\n<meta property=\"og:description\" content=\"This paper empirically analyzes the effects of de jure financial opennesson institutional quality as captured by indicators on investment risk, corruption level, impartiality of judiciary system as well as the effectiveness of bureaucratic authorities. Using a panel data set of more than 110 countries and a time span from 1984 to 2005, we show that [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/\" \/>\n<meta property=\"og:site_name\" content=\"FIW\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_short_rgb.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"843\" \/>\n\t<meta property=\"og:image:height\" content=\"293\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@CentreFiw\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/\",\"name\":\"Financial Liberalization and Institutional Development - FIW\",\"isPartOf\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#website\"},\"datePublished\":\"2023-02-13T16:19:19+00:00\",\"dateModified\":\"2023-02-13T16:19:19+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Startseite\",\"item\":\"https:\/\/www.fiw.ac.at\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\/\/www.fiw.ac.at\/en\/publications\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Financial Liberalization and Institutional Development\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#website\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/\",\"name\":\"FIW\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fiw.ac.at\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#organization\",\"name\":\"FIW\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png\",\"contentUrl\":\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png\",\"width\":843,\"height\":843,\"caption\":\"FIW\"},\"image\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/x.com\/CentreFiw\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Financial Liberalization and Institutional Development - FIW","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/","og_locale":"en_US","og_type":"article","og_title":"Financial Liberalization and Institutional Development - FIW","og_description":"This paper empirically analyzes the effects of de jure financial opennesson institutional quality as captured by indicators on investment risk, corruption level, impartiality of judiciary system as well as the effectiveness of bureaucratic authorities. Using a panel data set of more than 110 countries and a time span from 1984 to 2005, we show that [&hellip;]","og_url":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/","og_site_name":"FIW","og_image":[{"width":843,"height":293,"url":"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_short_rgb.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@CentreFiw","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/","url":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/","name":"Financial Liberalization and Institutional Development - FIW","isPartOf":{"@id":"https:\/\/www.fiw.ac.at\/en\/#website"},"datePublished":"2023-02-13T16:19:19+00:00","dateModified":"2023-02-13T16:19:19+00:00","breadcrumb":{"@id":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.fiw.ac.at\/en\/publications\/financial-liberalization-and-institutional-development\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Startseite","item":"https:\/\/www.fiw.ac.at\/en\/"},{"@type":"ListItem","position":2,"name":"Publications","item":"https:\/\/www.fiw.ac.at\/en\/publications\/"},{"@type":"ListItem","position":3,"name":"Financial Liberalization and Institutional Development"}]},{"@type":"WebSite","@id":"https:\/\/www.fiw.ac.at\/en\/#website","url":"https:\/\/www.fiw.ac.at\/en\/","name":"FIW","description":"","publisher":{"@id":"https:\/\/www.fiw.ac.at\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.fiw.ac.at\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.fiw.ac.at\/en\/#organization","name":"FIW","url":"https:\/\/www.fiw.ac.at\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png","contentUrl":"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png","width":843,"height":843,"caption":"FIW"},"image":{"@id":"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/x.com\/CentreFiw"]}]}},"_links":{"self":[{"href":"https:\/\/www.fiw.ac.at\/en\/wp-json\/wp\/v2\/publication\/1608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fiw.ac.at\/en\/wp-json\/wp\/v2\/publication"}],"about":[{"href":"https:\/\/www.fiw.ac.at\/en\/wp-json\/wp\/v2\/types\/publication"}],"wp:attachment":[{"href":"https:\/\/www.fiw.ac.at\/en\/wp-json\/wp\/v2\/media?parent=1608"}],"wp:term":[{"taxonomy":"jelcode","embeddable":true,"href":"https:\/\/www.fiw.ac.at\/en\/wp-json\/wp\/v2\/jelcode?post=1608"},{"taxonomy":"keyword","embeddable":true,"href":"https:\/\/www.fiw.ac.at\/en\/wp-json\/wp\/v2\/keyword?post=1608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}