Trade in Financial Services and Capital Movements
22 Pages Posted: 12 Feb 2006
There are 2 versions of this paper
Trade in Financial Services and Capital Movements
Date Written: July 1999
Abstract
International financial liberalization may alter saving-investment imbalances and patterns of capital flows across countries. In a panel of OECD countries for 1990-96, this study examines how the liberalization of capital movements and financial services trade affects net private capital flows. Capital inflows tend to fall (rise) with the liberalization of commercial presence in banking and securities (insurance) services, possibly reflecting an increase (decrease) in saving. Capital account liberalization is found to stimulate capital inflows, suggesting that better access to external financing helps sustain larger fiscal and current account deficits. When cross-border trade is liberalized, capital flows change insignificantly.
Keywords: financial services, capital movement, trade, OECD
JEL Classification: F21, F36, F14
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Trade Policy in Financial Services
By Natalia T. Tamirisa, Piritta Sorsa, ...
-
Liberalization of Trade in Financial Services and Financial Sector: Stability Analytical Approach
-
Liberalization of Trade in Financial Services and Financial Sector Stability Empirical Approach