ABSTRACT
This study probes the linkages between the institutional framework of the economy
and the outcome of financial liberalization. It argues that institutions and institutional
quality are crucial to avoiding the crises often precipitated by financial liberalization.
This issue is examined at two levels, first by building a theoretical model that extends
existing theory regarding the role of institutions in financial liberalization, followed by
an empirical analysis of the experiences of five developing economies, Korea, Thailand,
Indonesia, Mexico and India that liberalized their financial sector in the 1980s and................