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Complementarities between Institutions and Openness in Economic Development: Evidence for a Panel of Countries

Keywords: External Stocks , Openness , Volatility , Growth

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Abstract:

The main goal of the paper is to evaluate the sources of growth in Chile and the world in the last three decades, but stressing the role of complementarities in economic policies. Therefore, we evaluate the growth determinants for a sample of seventy-eight countries with information over the 1970-2000 period. In contrast to Gallego and Loayza (2002), we test directly the existence of complementarities between trade and financial liberalization policies with: a) the initial conditions of the economy, b) human capital policies, and c) the quality of institutions

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