Abstract:
During the 1990s, most transition economies undertook a series of market reforms, including opening their capital accounts and have become more integrated into global financial system. In this paper, we focused on the effects that the financial globalization and international private capital flows had on the development of transition countries as well as how they helped shape its financial markets. We concluded with some important developments regarding the desirable degree of openness of the capital accounts with regard to the growth in the long run.
