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The role of Financial Liberalization in Development: Weaknesses and Corrections

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  • D. Saidane

Abstract

During the 80’s and 90’s, the increase in financial instability shook up the idyllic vision of the financial liberalization in developed nations. The difficulties borne by the banking sectors spread out in some Asian and Latin American countries as systemic crises. The deregulation of the financial sector has really affected their banks. We try to carry out an examination of the the financial liberalization process through a review of the literature. We analyze at first endemic weaknesses, then we study some institutional and conceptual solutions. We try to identify the micro-economic banking dimension as a driving force for the growth. The role of banking system is described in a development process usually facing the apology of the stock market.

Suggested Citation

  • D. Saidane, 2005. "The role of Financial Liberalization in Development: Weaknesses and Corrections," Finance 0503003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpfi:0503003
    Note: Type of Document - pdf; pages: 14
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    References listed on IDEAS

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    • G - Financial Economics

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