The impact Of Capital Flux Liberalization On Economic Growth in Emerging Countries: Panal Data During The Period 1980-2014

Abstract

This study examines the relationship between capital flows liberalization and economic growth in a set of emerging countries during the period 1980-2014 using a panel data framework. The results obtained indicate that the capital flow liberalization has negative and no significant impact on economic growth. However, when estimating the growth model under a set of preconditions, like trade openness, Financial development, the quality of institutions, the impact of capital flow liberalization became positive.