Does Financial Liberalization Cause Financial Crisis? Aomparison of Financial Reforms in Mexico and South Korea
Date Issued
2008
Date
2008
Author(s)
Huang, Nuan-Ting
Abstract
From the latter half of 1970s, a huge amount of capital flows globally with the emergence of financial liberalization, which makes newly-industrialized countries loosen their financial regulations in order to attract capital flow in. However, such capital inflow often creates prosperous illusions yet hardly contributes to real sector development, and the financial crises in 1994 and 1997 reveal the structural backwardness in Mexican and South Korean economies under financial liberalization.ince the economic structural backwardness usually originates from institutional arrangement, and the constant causes and historical contingencies in national political and economic development deeply influence structural change, hence to explain and compare the financial evolution of Mexico and South Korea with historical institutionalism and path dependency is a way to find those problems embedded in their financial institutions. From various literatures we can see the conglomerates in both countries lock themselves into the financial institutions when cooperating with the governments and then become essential actors to affect the results of financial reform. Therefore, the financial liberalization in Mexico and South Korea only catalyzes their financial crises and unveil those existing problems.
Subjects
financial liberalization
financial regulation
financial institution
economic structural backwardness
historical institutionalism
path dependency
financial crisis
SDGs
Type
thesis
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ntu-97-R91322011-1.pdf
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