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Testing the Potential Impact of Economic Changes on Savings in African Countries

In: Financial Liberalization in Developing Countries

Author

Listed:
  • Abdullahi Dahir Ahmed

    (Victoria University)

  • Sardar M. N. Islam

    (Victoria University)

Abstract

In the last chapter, our analysis has considered a theoretical model of imperfect competition in the commercial banking sector of the selected sub-Saharan African countries. Specifically, our discussions focused on determining the direction of interest rate spread following economic liberalization in the presence of a concentrated commercial banking environment. We also considered the issue of lack of entry by new ‘meaningful’ financial institutions, raising the possibility of high fixed (overhead) costs as a barrier to entry. The available anecdotal evidence also supported this theoretical claim.

Suggested Citation

  • Abdullahi Dahir Ahmed & Sardar M. N. Islam, 2010. "Testing the Potential Impact of Economic Changes on Savings in African Countries," Contributions to Economics, in: Financial Liberalization in Developing Countries, chapter 0, pages 175-219, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2168-0_6
    DOI: 10.1007/978-3-7908-2168-0_6
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