Demetriades, Panicos, Devereux, Michael and Luintel, Kul (1998) Productivity and Financial Sector Policies: Evidence from South East Asia. Journal of Economic Behavior & Organization, 35 (1). pp. 61-82.
This paper uses primary data collected from the Central Bank reports to examine the influence of financial sector policies on the average productivity of capital in five South East Asian economies. The data include measures of `repressionist' policies encompassing interest rate controls, directed credit programmes and reserve and liquidity requirements. We use time series techniques to examine whether these policies have a statistically significant influence on the average productivity of capital, conditioning on variables suggested by economic theory. These policies are found to have a significant negative effect on productivity in most cases with the important exception of South Korea, for which we find significant positive effects.
|Keywords:||Financial policies; Financial repression; Productivity|
|Centre:||Oxford University Centre for Business Taxation|
|Date Deposited:||01 Dec 2011 16:17|
|Last Modified:||23 Oct 2015 14:06|
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