The Evidence and Impact of Financial Globalization

Chapter 2

Measurements of Capital and Financial Current Account Openness

D.P. Quinn*, M. Schindler^{†, ‡} and A.M. Toyoda^§

^*Georgetown University, Washington, DC, USA

^†Joint Vienna Institute, Vienna, Austria

^‡International Monetary Fund, Washington, DC, USA

^§Villanova University, Villanova, PA, USA

Outline

Measuring Financial Integration

The IMF’s AREAER

Indicators Based on the AREAER Categorical Table of Restrictions

Indicators Based on Text of AREAER

Other De Jure Indicators

De Jure and De Facto Data Compared

Coding

Data Properties

Uses of Measures

Conclusions

Acknowledgment

References

For two decades, the relationship between financial openness and economic development has been a hotly debated topic. Investigation in this area could not have ...