Does financial openness explain the increase of global imbalances before the crisis of 2008?

Jamel Saadaoui (1)

1 BETA - Bureau d'Économie Théorique et Appliquée

We investigate whether financial openness has played a major role in the evolution of global imbalances over the period before the crisis of 2008. We estimate, with panel regression techniques, the impact of financial openness on medium run trends in current account imbalances for industrialized and emerging countries by using a de jure measure of financial openness and a de facto measure of financial openness. Nowadays, current account imbalances are larger in reason of higher capital mobility. Nevertheless, a large part of imbalances may be considered as unrelated with the evolution of macroeconomic fundamentals.

Mots clés: Global imbalances; Financial openness; Panel data

Domaines: Economies et finances

Jamel Saadaoui. Does financial openness explain the increase of global imbalances before the crisis of 2008? . International Economics, 2015, 143, ⟨10.1016/j.inteco.2015.04.002⟩. ⟨hal-01397611⟩