Abstract

TOVAR GARCIA, Edgar Demetrio. CAPITAL GLOBALIZATION AND INSTITUTIONAL DEVELOPMENT OF THE FINANCIAL SYSTEM. Rev.econ.inst. [online]. 2007, vol.9, n.17, pp.75-107. ISSN 0124-5996.

To obtain benefits from capital globalization, it is necessary for the domestic financial market to be well-developed and regulated. This paper analyzes the effect of capital globalization on the financial system from an institutional perspective. Institutional change is produced by the market and the government and non-government agreements introduced by the financial integration. The empiric evidence suggests that capital globalization has a positive relationship with the institutional development of the financial system, because it reinforces private property rights and reduces monopolist financial markets.

Keywords : globalization; capital; institutional development; financial system.

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