Assessing the Effect of Financial Market Liberalization on Economic Growth and Investment Efficiency in Asia

Posted: Jul 10, 2023

• Sophia Clark
• Sophia White
• Theodore Moore

Abstract

The relationship between financial market liberalization and economic performance has been a subject of extensive scholarly inquiry, particularly in the context of emerging Asian economies. Traditional approaches to this research question have predominantly relied on conventional econometric methods and standardized liberalization indices. However, these methods often fail to capture the complex, non-linear, and path-dependent nature of financial reform processes. This research introduces a fundamentally different methodological framework that combines computational intelligence techniques with unconventional data sources to provide a more nuanced understanding of how financial liberalization affects economic growth and investment efficiency in Asia. Our approach is distinguished by several innovative elements. First, we conceptualize financial liberalization not as a binary state but as a multi-dimensional process involving sequenced policy changes across different financial sectors. Second, we employ a quantum-inspired optimization algorithm that can simultaneously evaluate multiple policy pathways and their economic consequences. Third, we integrate diverse data streams including satellite-based economic activity indicators, digital financial transaction data, and computational linguistic analysis of policy documents to create a more comprehensive assessment framework.