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Introduction
In his paper entitled Capital Mobility and Economic Performance: Are Emerging Economies Different? , Edwards (2000) explores whether capital mobility influences different factors related to economic growth or not. His preliminary analysis focuses on arguing viewpoints of his colleagues that prove that capital mobility and the expansion of a countrys markets lead to significant improvements in its economic system.
The author used the quantitative methodology in his work to refute the theories of other scholars and prove that of his (that appeared to be more reasonable and realistic than other papers suggested in the text). The estimation process developed by Edwards (2000) is based on the comparison of other scholars arguments and their evaluation of what has happened in real conditions of the economic environment after their presumptions. Also, the author explored whether their statements were applicable in practice or not.
Discussion
The main results and ideas that Edwards (2000) had a chance to find include that the positive relationship between capital account openness and productivity performance only manifests itself after the country in question has reached a certain degree of development (p. 16). Also, it is obvious that countries that do not have many distortions appear to develop faster and more effectively than their competitors in the global arena with certain regulations that somehow influence different operations in local financial markets (Edwards, 2000).
This article and the research developed by its author constitute a contribution to the professional literature by observing and analyzing the functioning of several economic theories in practice. Particular events in financial markets with the use of these assumptions were evaluated to understand their effectiveness and impact on different countries economic growth.
Conclusion
The conclusion of the article developed by Edwards (2000) refutes the theory of a countrys capital mobility and the positive impacts of its openness on both development and expansion in the sphere of economics. Instead, the fact of owning profitable markets and occupying beneficial positions on the platform of international trading operations becomes available only when a particular Commonwealth is stable enough.
Also, the paragraph of the conclusion explains that it is almost impossible to reach the point of capital mobility without being a financially successful state. Moreover, the first object that various developing economies must aim at implies their domestic markets as operations with foreign partners might not be permanent. Although the claims of the author seem to be reasonable, relevant, and trustworthy, the context of the article has to be reconsidered by contemporary professionals in the sphere of economics because it has been 18 years since the publication.
Bibliography
Edwards, S. (2000). Capital mobility and economic performance: Are emerging economies different? National Bureau of Economic Research, 1(1), 1-16. Web.
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