They found that financial liberalization has a positive impact on GDP growth only in the short run. The financial liberalization positively affects agricultural growth in the short run and long run. ... These studies recommended the policy makers to improve financial risk management system.

Does liberalisation cause economic growth?

Empirically, the evidence is mixed; some studies have found that a country's rate of economic growth is positively correlated with its openness to international trade, while others have failed to demonstrate any role for trade liberalisation in spurring economic growth.

Does liberalization guarantee growth?

Economic liberalization is generally thought of as a beneficial and desirable process for developing countries. The underlying goal of economic liberalization is to have unrestricted capital flowing into and out of the country, boosting economic growth and efficiency.