Cookies?
Library Header Image
LSE Research Online LSE Library Services

On the growth effect of stock market liberalizations

Gupta, Nandini and Yuan, Kathy (2009) On the growth effect of stock market liberalizations. Review of Financial Studies, 22 (11). pp. 4715-4752. ISSN 0893-9454

Full text not available from this repository.

Abstract

We investigate the effect of a stock market liberalization on industry growth in emerging markets. Consistent with the view that liberalization reduces financing constraints, we find that industries that are more externally dependent and face better growth opportunities grew faster following liberalization. However, this growth increase appears to come from an expansion in the size of existing firms rather than through the entry of financially constrained new firms. We show that following liberalization, new firm growth occurs in countries and industries with lower entry barriers. Hence, liberalization has a more uniform growth impact if accompanied by competition-enhancing reforms.

Item Type: Article
Official URL: http://rfs.oxfordjournals.org/
Additional Information: © 2009 The Authors
Library of Congress subject classification: H Social Sciences > HG Finance
Journal of Economic Literature Classification System: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
F - International Economics > F3 - International Finance > F30 - General
F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
Sets: Departments > Finance
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 13 Jul 2011 12:34
URL: http://eprints.lse.ac.uk/37383/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only