Intersectoral financial flows in developing countries
Article Abstract:
Intersectoral financial flows in developing countries are used to show that business is more flexible than the household in its response to financial market conditions. Changes in the flow of funds from the foreign and government sector cause at most a small response in flow from the household sector compared with the response from the business sector. Swings in the availability of foreign finance or in the government's surplus are absorbed entirely by the business sector, with household coming forward with little if any additional savings.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1993
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Financial liberalisation, stockmarkets and economic development
Article Abstract:
An analysis of the effects of stockmarket development on the liberalization efforts of developing countries is given. Stock market development is not a natural stage in the evolution of developing economies and developing countries simply cannot afford the luxury of stock markets since they promise little for the promotion of economic development. Developing countries are better off reforming their banking industry rather than relying on the economic miracles promised by stock markets.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1997
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In favour of financial liberalisation
Article Abstract:
Financial liberalization is an effective tool for stimulating economic development but should be accompanied by fiscal reform to ensure that government debt will not reach unbelievably high levels. Liberalization of interest rates results in the increase of investments and savings and consequently, in faster economic growth. It is conclusive that the repressive acts of the government aimed at reducing fiscal expenditure are damaging to the economy in the long run.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1997
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