A New Database of Financial Reforms

A New Database of Financial Reforms

December 2008 | Abdul Abiad, Enrica Detragiache, and Thierry Tressel
This paper introduces a new database of financial reforms covering 91 economies from 1973 to 2005. The database captures seven dimensions of financial sector policy, including credit controls, interest rate controls, entry barriers, state ownership, securities markets, banking regulations, and capital account restrictions. Each dimension is scored on a graded scale from 0 to 3, with 0 representing the highest degree of repression and 3 indicating full liberalization. The database provides a more detailed and nuanced measure of financial reform compared to existing binary measures. It also includes descriptive statistics, correlations among components, and comparisons with other financial liberalization databases. The database allows for a more precise analysis of the timing and magnitude of financial policy changes. The paper discusses the construction of the database, its comparison to other measures, and its potential applications in understanding the impact of financial reforms on economic outcomes. The database is a work in progress and benefits from feedback on its construction and coding. It covers a wide range of economies and provides insights into the patterns and trends of financial liberalization across different regions and income levels. The database highlights the importance of financial reforms in promoting economic growth and development, and it offers a comprehensive tool for researchers and policymakers to analyze the effects of financial sector policies.This paper introduces a new database of financial reforms covering 91 economies from 1973 to 2005. The database captures seven dimensions of financial sector policy, including credit controls, interest rate controls, entry barriers, state ownership, securities markets, banking regulations, and capital account restrictions. Each dimension is scored on a graded scale from 0 to 3, with 0 representing the highest degree of repression and 3 indicating full liberalization. The database provides a more detailed and nuanced measure of financial reform compared to existing binary measures. It also includes descriptive statistics, correlations among components, and comparisons with other financial liberalization databases. The database allows for a more precise analysis of the timing and magnitude of financial policy changes. The paper discusses the construction of the database, its comparison to other measures, and its potential applications in understanding the impact of financial reforms on economic outcomes. The database is a work in progress and benefits from feedback on its construction and coding. It covers a wide range of economies and provides insights into the patterns and trends of financial liberalization across different regions and income levels. The database highlights the importance of financial reforms in promoting economic growth and development, and it offers a comprehensive tool for researchers and policymakers to analyze the effects of financial sector policies.
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[slides and audio] A New Database of Financial Reforms