Έλεγχοι κεφαλαίων, θεσμοί και χρηματοοικονομική ανάπτυξη
Capital controls, institutions and financial development
KeywordsΈλεγχοι κεφαλαίων ; Χρηματοοικονομική ανάπτυξη ; Θεσμοί ; Χρηματοοικονομική απελευθέρωση ; Χρηματοοικονομική εμβάθυνση ; Χρηματοοικονομικό σύστημα ; Capital controls ; Financial development ; Institutions ; Financial liberalization ; Financial deepening ; Financial system
The imposition of controls on capital movements was the latest result of the prolonged economic difficulties experienced by the country. These controls are to this day part of the everyday life of natural and legal entities and a topic of discussion for the academic community, the media and the citizens. These were the motives behind the decision to investigate how financial development is influenced by the presence of such controls and the institutional level of each country. events of June 2015 wrote a new page in the book of the turbulent history of the Greek economy. In order to examine these relationships we relied on a modified form of the econometric model developed by Chinn and Ito (2006). Compared with previous empirical studies, in this thesis the measurement of financial development and capital controls is achieved with the use of new indicators of the most recent available studies and the databases that accompany them. The sample that was formed consists of 70 countries and covers a time period of 19 years (1995-2013). The results of our empirical analysis constitute a negative relationship between the level of restrictions on the free movement of capital and financial development. Conversely, a higher level of institutions is associated with better performance of the financial segment of the economy. Moreover, it was observed that countries with higher institutional development benefit more from a financial liberalization and the lifting of restrictions. Finally, the results show that when countries are categorized according to the national income, the negative impact capital controls on financial development is greater for countries that are classified in the high-income category. These findings come to reaffirm and strengthen similar findings of previous empirical studies and spur for more detailed future investigations.