Financial Liberalization in Developing Countries - Issues, Time Series Analyses and Policy Implications

185544_1_En_FM1_OnlinePDF.pdf

185544_1_En_1_Chapter_OnlinePDF.pdf

Chapter 1: Introduction

Contemporary Issues in Finance

Financial Repression

Financial Liberalization

Financial Crisis and Financial Contagion

International Capital Mobility/Capital Control

Financial Liberalization: Opposing Views

Approaches to Financial Liberalization

Financial Liberalization and Country Experience in Africa and Asia

Benefits of Financial Liberalization: An Empirical Issue

The Objectives of this Book

Methodology

Time Series Financial Econometrics

Cost Benefit Analysis

Contribution of this Book

The Structure of the Book

185544_1_En_2_Chapter_OnlinePDF.pdf

Chapter 2: Background, Structure and Financial Reforms

2.1 Introduction

2.2 The Case of Kenya

2.2.1 The Structure of the Financial System

2.2.2 Agricultural Sector and Other Policies Framework

2.2.3 Liberalization and the Era of Structural Adjustments

2.3 The Case of Malawi

2.3.1 Structure of the Financial System

2.3.2 Agricultural Sector and Other Policies Framework

2.4 The Case of Botswana

2.4.1 Structural Developments of the Financial System

2.4.2 Supplementing Role of Foreign Aid in Botswana: The Two-Gap Model

2.4.3 Trends and Policies in Agriculture and other Sectors

2.5 The Thai Financial System

2.6 Conclusion

185544_1_En_3_Chapter_OnlinePDF.pdf

Chapter 3: Literature Review

3.1 Introduction

3.2 Financial Development and Economic Development

3.3 Financial Liberalization

3.3.1 Financial Liberalization in Sub-Saharan Africa

3.3.2 The Thai Case

3.4 Conclusion

185544_1_En_4_Chapter_OnlinePDF.pdf

Chapter 4: The Theory of Financial Liberalization and its Economic Impact: An Assessment

4.1 Financial Liberalization

4.1.1 A Brief Theoretical Assessment

4.1.2 Observations from the Case Study

4.2 Contrasts Between the Theory and Country Performance

4.2.1 Introduction

4.2.2 Economic Impact of the Recent Financial Reforms: Kenya

4.2.3 Malawi

4.2.4 Botswana

4.3 Conclusion

Appendix

185544_1_En_5_Chapter_OnlinePDF.pdf

Chapter 5: An Analysis of the Economic Outcome of Financial Liberalization1

5.1 Introduction

5.2 A Simple Model of Imperfect Competition and Interest Rate Spread

5.2.1 Liberalization: Market Determined Outcome

5.2.2 Financial Repression

5.2.3 The Level of Fixed Costs as a Barrier to Entry

5.2.4 Graph of Fixed Costs and New Entry

5.2.5 Dynamics of how much the Interest Rate goes up after Liberalization

5.3 Financial Reforms and Absence of Entry by New Foreign Banks

5.4 Conclusion

Appendix A 5.1: Deriving the Market Equilibrium Condition for Loan Equation

Appendix A 5.2: Deriving the Fixed Cost Lines for Medium and Lower Regions at $${\mathop {{\bar r\,^c}}\ }$$

Appendix A 5.3: Maximal Points for C and D Curves

185544_1_En_6_Chapter_OnlinePDF.pdf

Chapter 6: Testing the Potential Impact of Economic Changes on Savings in African Countries

6.1 Introduction

6.2 Econometric Research on the Effect of Various Financial Conditionings

6.3 Reforms and Savings Mobilization: Comparative Analysis

6.3.1 Measures of Financial Liberalization

6.3.2 Basic Theory and other Specifications

6.4 The Macroeconometric Model

6.4.1 VECM Set-up

6.5 Data and an Analysis of Econometric Results

6.6 Impacts of Market Liberalization on the Macroeconomy and Growth

6.6.1 Hypothetical scenario for Kenya and Malawi

6.7 Conclusion

Appendix

185544_1_En_7_Chapter_OnlinePDF.pdf

Chapter 7: Welfare Implications of Financial Liberalization in Thailand: A Cost-Benefit Analysis

Introduction

Financial Liberalization and its Implications in Thailand

Welfare Economics Framework: Social Choice and Cost Benefit Analysis of Globalization and Financial Liberalization

Costs and Benefits of Financial Liberalization (and Financial Crisis): Illustrative Numerical Estimation of the Costs and Bene

Financial Benefits

Financial Costs

Methodology, Numerical Estimates and Data Sources

Welfare Implications of Economic Growth

Conclusions

Appendix 1 General DataData drawn from previous work of the authors (see Clarke, M. and Islam, S. (2004), Economic Growth and

Appendix 2 Cost Benefit Data

185544_1_En_8_Chapter_OnlinePDF.pdf

Chapter Chapter 8: Summary, Findings and Conclusion

Background and Motivation

The Summary and Empirical Results

Policy and Institutional Implications

185544_1_En_BM2_Chapter_OnlinePDF.pdf

Appendix

1 Movement from Repression to Liberalization

: Index

: Bibliography