This paper reexamines the effects of capital account liberalization on economic growth, using various measures and methods. We find the evidence that capital account liberalization promotes economic growth temporarily in panel regressions that use more sophisticated indexes for financial opening. We also examine the conditional effects of capital account liberalization on economic growth. There is a nonlinear relationship between its growth effects and the level of growth in cross-country

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... sions. The short-run growth effects of capital account liberalization in panel regressions are larger in a country that has lower government consumption.