Financial openness under scrutiny: Dimensions and effects on growth across levels of development

Mauro Ignacio  Romero Stéfani; María María Ibañez Martin; Mara Leticia Rojas

doi:10.52292/j.estudecon.2026.5151

Autores

Mauro Ignacio Romero Stéfani Universidad Nacional del Sur; Instituto de Investigaciones Económicas y Sociales del Sur (IIESS, UNS-CONICET), Argentina https://orcid.org/0009-0003-5363-4349
María María Ibañez Martin Universidad Nacional del Sur; Instituto de Investigaciones Económicas y Sociales del Sur (IIESS, UNS-CONICET), Argentina https://orcid.org/0000-0002-0476-1654
Mara Leticia Rojas Universidad Nacional del Sur; Instituto de Investigaciones Económicas y Sociales del Sur (IIESS, UNS-CONICET), Argentina https://orcid.org/0000-0002-8752-4362

DOI:

https://doi.org/10.52292/j.estudecon.2026.5151

Palavras-chave:

Economic growth, financial openness, financial dimensions, economic policy

Resumo

This paper examines the heterogeneous effects of financial openness on economic growth in 162 countries from 1970 to 2019, distinguishing between de jure and de facto measures and accounting for income levels. Using panel estimations with robust standard errors, the analysis shows that aggregate financial openness does not ensure growth and that its effects are shaped by country characteristics. Financial openness fosters growth in middle-income economies, particularly through foreign direct investment, but has little impact in low-income countries and declining effects in high-income countries. These findings indicate that the growth effects of openness depend on development-related factors, such as institutional quality and absorption capacity, thereby underscoring the need for context-specific financial policies.

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