This book examines the economic effects of capital account liberalization on economic growth. The first essay investigates the growth effects of financial opening, using cross-country regressions and a new measure for capital account openness. The second essay studies whether financial opening and foreign capital inflows eased financing constraints and made investment more efficient in Korea. There is no evidence that capital account liberalization promotes long-term growth and made the Korean financial market in the 1990s. In the last essay, the historical development of capital controls,...