Autor: Romero Stéfani Mauro Ignacio, Ibáñez Martín María María, Rojas Mara Leticia
Institución: IIESS - CONICET-UNS
Año: 2025
JEL: F3, O4
Resumen:
Despite decades of research, the literature still lacks consensus on whether financial openness fosters economic growth. This study addresses that gap by jointly analysing de jure, de facto, and hybrid measures of openness, and by comparing developed and developing economies. Using the Dynamic Common Correlated Effects (DCCE) estimator, the results reveal heterogeneous effects depending on both the type of openness and the country context. De facto inflows such as foreign direct investment (FDI) and portfolio equity promote growth, while broad measures of capital flows are negatively associated with it. De jure indicators show no significant impact, whereas hybrid indices yield positive effects overall. From a policy perspective, developed economies are better positioned to reap benefits, while developing economies require careful sequencing and stronger institutions.