TAILIEUCHUNG - A New Database of Financial Reforms

As the first public database of indicators that consistently measure people’s use of financial products across economies and over time, the Global Findex database fills a big gap in the financial inclusion data landscape. The data set can be used to track the effects of financial inclusion policies globally and develop a deeper and more nuanced understanding of how people around the world save, borrow, make payments, and manage risk. The main indicators on the use of formal ac- counts and formal credit will be collected yearly, and the full set of indicators every three years | A New Database of Financial Reforms Abdul Abiad Enrica Detragiache and Thierry Tressel INTERNATIONAL MONETARY FUND 2008 International Monetary Fund WP 08 266 IMF Working Paper IMF Institute and Research Department A New Database of Financial Reforms Prepared by Abdul Abiad Enrica Detragiache and Thierry Tressel 1 Authorized for distribution by Enrica Detragiache December 2008 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author s and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author s and are published to elicit comments and to further debate. This paper introduces a new database of financial reforms covering 91 economies over 1973-2005. It describes the content of the database the information sources utilized and the coding rules used to create an index of financial reform. It also compares the database with other measures of financial liberalization provides descriptive statistics and discusses some possible applications. The database provides a multi-faceted measure of reform covering seven aspects of financial sector policy. Along each dimension the database provides a graded rather than a binary score and allows for reversals. JEL Classification Numbers N20 G18 G28 Keywords Financial liberalization financial reforms Author s E-Mail Address Aabiad@ EDetragiache@ Ttressel@ 1 We are grateful to Aart Kraay Ashoka Mody Antonio Spilimbergo and Barbara Stallings for helpful comments and suggestions. The latest version of this database could not have been completed without the expert contributions of Sawa Omori Kruti Bharucha and Adil Mohommad. We also wish to thank Radu Paun and Eun-Jue Chung for excellent research .

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