Financial liberalisation,stockmarkets and economic development
AbstractAbstract During the 1980s and 1990s, many developing countries (DCs) have been engaged in far-reaching reforms of their financial systems, liberalising them and making them more market-oriented. This liberalisation, involving inter alia ‘financial de-repression’ has been inspired partly by the work of the McKinnon (1973) and Shaw (1973) [M-S] school. This paper suggests that, in addition to financial de-repression, there has been a major new element in the development of DC financial systems in recent years - the establishment and fast expansion of stockmarkets. These markets have played a key role in the internal as well as external financial liberalisation processes in leading DCs. Further, the paper finds that the actual behaviour of these markets in many countries has led to outcomes which undermine the effects of the higher real interest rates arising from 'financial de-repression'.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 53897.
Date of creation: 06 Jun 1996
Date of revision:
Publication status: Published in Economic Journal 442.107(1997): pp. 771-782
financial de-repression; stockmarkets; liberalisation; developing countries;
Other versions of this item:
- Ajit Singh, 1998. "Financial liberalisation, stockmarkets and economic development," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 8(1), pages 165-182.
- Singh, Ajit, 1997. "Financial Liberalisation, Stockmarkets and Economic Development," Economic Journal, Royal Economic Society, vol. 107(442), pages 771-82, May.
- G2 - Financial Economics - - Financial Institutions and Services
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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