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https://doi.org/10.1080/1331677X.2022.2080741

Capital account liberalisation and systemic financial risk: evidence from 24 countries

Qianqian Guo
Zhifang Su


Puni tekst: engleski pdf 1.669 Kb

str. 845-863

preuzimanja: 211

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Sažetak

Capital account liberalisation can give rise to uncertainty in capital
flows, which may lead to an accumulation of financial risks. This
study measures the systemic financial risk indices using the coefficient
of variation method with data of 24 countries from 2003 to
2019 and the impact of capital account liberalisation on systemic
financial risks using the panel threshold model. Evidence shows
that systemic financial risk indices vary heterogeneously across
countries. The systemic financial risk indices of high-income countries
are lower than those of middle- and low-income countries.
Second, capital account liberalisation has an asymmetric effect on
systemic financial risk with a double threshold. Low-intensity and
high-intensity capital account liberalisation increases systemic
financial risk. However, medium-intensity capital account liberalisation
is effective in reducing systemic financial risk. Third, the
heterogeneity results suggest that capital account liberalisation is
conducive to reducing the financial risk of high- and middleincome
countries and has the opposite effect on low-income
countries. Therefore, this study recommends that countries adjust
the intensity of capital account liberalisation according to their
national conditions. It is necessary to establish a regulatory system
for cross-border capital flows and maximise the benefits of
liberalisation while safeguarding financial market stability.

Ključne riječi

Capital account liberalisation; systemic financial risk; asymmetric effect; threshold model

Hrčak ID:

303757

URI

https://hrcak.srce.hr/303757

Datum izdavanja:

31.3.2023.

Posjeta: 440 *