Financial markets’ shutdown and re-access

We employ a discrete-time parametric duration model on a group of 121 countries over the period 1970-2011 and find that the probability of the end of financial markets’ shutdown and re-access falls as these events become longer. We also show that: (i) shutdown episodes are longer when economic prospects are poor and the degree of financial openness falls, the chief executive has been in office for long periods, and the country has a default history; and (ii) spells of re-access tend to be longer when economic growth improves and financial openness increases, there are neither government crises nor government instability, and the country did not default in the past.