콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy

Print

Financial deregulation and segmented capital markets : The case of Korea

Related Document
Frame of Image
  • Financial deregulation and segmented capital markets
  • Edwards, Sebastian
  • University of California, Los Angeles


link
Title Financial deregulation and segmented capital markets
Similar Titles
Sub Title

The case of Korea

Material Type Articles
Author(English)

Edwards, Sebastian

Publisher

Los Angeles:University of California, Los Angeles

Date 1987-02
Series Title; No Discussion Paper / (no.432)
Pages 24
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Holding University of California, Los Angeles

Abstract

This paper deals with the relation between the official and unorganized (or curb) financial markets in Korea. The paper focuses on the behavior of officially controlled interest rates and freely determined market interest rates, and analyzes the effects of financial deregulation on interest rates, investment and growth in a segmented capital market. The empirical results show that changes in the officially controlled time deposit rate have been positively related to changes in the freely determined curb market interest rate. An aggregate investment function is also estimated for Korea. It is found that an increase (decrease) in the curb rate discourages (encourages) investment; on the other hand, increases in the real volume of credit intermediated in the official segment have a positive effect on real aggregate investment.