Financial Liberalization in Developing Countries: Issues, by Abdullahi Dahir Ahmed

By Abdullahi Dahir Ahmed

The most recent worldwide monetary and monetary concern of 2008 has proven the necessity to think again the desirability of monetary liberalization. This publication is project this kind of research at the factor of monetary and marketplace liberalization by way of adopting subtle econometric tools. It examines the consequences of monetary liberalization on monetary improvement and social welfare utilizing a case learn technique on a pattern of 3 Sub-Saharan African and an Asian state within which monetary liberalization reforms have been applied. extra, it highlights a few key reasons of the failure of reform, and the guidelines and associations which are had to create an atmosphere for profitable monetary liberalization. From the designated state checks, a number of rules resembling powerful festival within the banking zone, sound criminal procedure, economic self-discipline and monetary institutional improvement are pointed out, adoption of that can enhance the potency of source allocation, advance mark downs and influence development, and therefore bring about welfare enhancement.

Show description

Read Online or Download Financial Liberalization in Developing Countries: Issues, Time Series Analyses and Policy Implications PDF

Best macroeconomics books

Studies in the Economics of Transportation

There are detailed complexities linked to the commercial valuation of clever Transportation structures (ITS) and telematics. conventional equipment of quantitative research is probably not applicable in effectively and reliably assessing the industrial affects of those applied sciences. even if complex transportation and similar applied sciences are being deliberate and deployed at an more and more swift speed, the various applied sciences are nonetheless rather new, and their use is probably not common.

Principles of Financial Economics

This booklet introduces graduate scholars in economics to the subfield of economic economics. It stresses the hyperlink among monetary economics and equilibrium thought, devoting much less cognizance to basically monetary issues comparable to valuation of derivatives. because scholars usually locate this hyperlink challenging to understand, the therapy goals to make the relationship particular and transparent in every one level of the exposition.

Additional resources for Financial Liberalization in Developing Countries: Issues, Time Series Analyses and Policy Implications

Example text

2 Agricultural Sector and Other Policies Framework Since the British rule, Kenya’s rate of economic growth and improvement in the standard of living has depended primarily on development in the agricultural sector. As early as 1950 tea and coffee alone contributed more than 30% of the total export (IBRD, 1963) and in 1961 the two crops contributed 42% of the total value of export. In the early years of independence, economic policies were geared towards expanding agricultural production to increase the prospect for world trade in commodities the country had competitive advantage to produce.

This crisis was further worsened by the 1973 oil shock which caused a 30% increase in all other import prices (Bigsten & Ndungu, 1991). Following this, a number of restrictive budgetary policies were introduced: (1) Import controls were increased, and specific quantitative restrictions were implemented. Import licensing became more restrictive as the government introduced highly protective policies for domestic producers, empowering them to authorize the imports of certain goods through a ‘No Objection certificate’.

8 Finally, the Central Bank also used interest rate structure to direct credit growth and to promote savings. The bank pursued a low interest rate policy during the first 20 years of independence in order to encourage investment and protect small borrowers (Central Bank, 2000). During this period both the inflation rate and the spread between lending and deposit rates were low (see Fig. 1) while the real interest rate remained negative or insignificantly positive. Conventionally, such a low interest rate did not encourage savings, however, it did enable the government to finance its expenditure cheaply (Mwega & Ndungu, 2002).

Download PDF sample

Rated 4.76 of 5 – based on 15 votes