Reinhart, Carmen and Tokatlidis, Ioannis (2000): Financial Liberalization: The African Experience. Published in: Journal of African Economies , Vol. 12, No. supplement 2 (2003): pp. 53-88.
Download (145Kb) | Preview
Almost a decade after their initiation, financial reforms appear to have had little effect on the economies of Sub-Sahara Africa. Whether the blame is to fall on their initial design itself, or on the partial nature of their implementation, liberalization policies have not mobilized savings, deepened intermediation or raised investment. Yet, Africa needs properly functioning financial markets for a more efficient allocation of resources for growth and risk diversification. How can African governments “correct’ their approach towards financial policy reform? A first step towards refining future policy choices requires an assessment of the short African experience with financial reform. How has progress in institutional and policy reform affected the financial depth of these economies? How have the gains in financial depth, if any, affected saving, consumption and investment? How does the African reform experience compare with that of other developing countries? How do the countries that during the period of reforms experienced substantial increases in aggregate saving compare to those that experienced substantial declines? These are some of the key issues we address in this paper.
|Item Type:||MPRA Paper|
|Original Title:||Financial Liberalization: The African Experience|
|Keywords:||librlization capital flows credit interest rates|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration
|Depositing User:||Carmen Reinhart|
|Date Deposited:||16. Feb 2009 07:00|
|Last Modified:||16. Feb 2013 15:10|
Aryeetey E., H. Hettige, M. Nissanke and W. Steel, (1996) Financial Market Fragmentation and Reforms in Sub-Saharan Africa, Working Paper, Private Sector Development and Economics Division, World Bank.
Bandiera, G. Caprio, P. Honohan, and F. Schiantarelli (2000). Does Financial Reform Raise or Reduce Saving?, Review of Economics and Statistics, May, 82(2): 239-263
Bayoumi, T. (1993). Financial Deregulation and Household Saving, Economic Journal, 103, November, 1432-1443.
Campbell J. and G. Mankiw(1989) Consumption Income and Interest Rates: Reinterpreting the time series evidence, in O. Blanchard and S. Fischer eds. NBER Macroeconomics Annual 1989, MIT Press
Campbell J. and G. Mankiw(1993) The Response of Consumption to Income: A cross country investigation, European Economic Review, 35, pp. 723-767
Collier P. and J.W. Gunning, (1999) Explaining African Economic Performance, Journal of Economic Literature, Vol XXXVII, pp. 64-111.
Collier P., and C. Pattillo eds, (2000) Investment and Risk in Africa, St.Martins Press
Collier P., A. Hoeffler and C. Pattillo, (1999) Flight Capital as a Portfolio Choice, Working Paper, WP/99/171, International Monetary Fund
Deaton, Angus,(1989). Saving in Developing Countries: Theory and Review, in Proceedings of the World Bank Annual Conference on Development Economics 1989, (Washington: World Bank).
de Melo, Jaime, and James Tybout, (1986). The Effects of Financial Liberalization on Savings and Investment in Uruguay, Economic Development and Cultural Change,. 561-87.
Easterly, William, (1994). Economic Stagnation, Fixed Factors, and Policy Thresholds, Journal of Monetary Economics, Vol. 33, (1994), pp. 525 57.
Faruqee, H., and A. Husain, Saving Trends in Southeast Asia: A Cross-country Analysis, IMF Working Paper WP/95/39, April 1995.
Gelbard E. A., and S. Pereira Leite, (1999) Measuring Financial Development in Sub-Saharan Africa, Working Paper, WP/99/105, International Monetary Fund
Giovannini, Alberto, (1985). Saving and the Rate of Interest in LDCs," Journal of Development Economics, Vol. 18, 197-217.
Hadjimichael M.T., D. Ghura, M. Muhleisen, R. Nord, and E. M. Ucer, (1995) Sub-Saharan Africa: Growth, Savings, and Investment, 1986-93, Occasional Paper 118, International Monetary Fund
Hadjimichael M.T., M.Nowak, R. Sharer and A. Tahari (1996) Adjustment for Growth: The African Experience, Occasional Paper 143, International Monetary Fund
Haque, N.U., and P. Montiel, Consumption in Developing Countries: Tests for Liquidity Constraints and Finite Horizons, Review of Economics and Statistics LXXI, (1989), 408-415.
Honohan, P. and Atiyas (1993). Intersectoral Financial Flows in Developing Countries, Economic Journal, May, 103, 666-679
Jappelli and Pagano (1994). Saving, Growth and Liquidity Constraints, Quarterly Journal of Economics, 109, 83-109.
Koskela, Loikkanen, and Viren (1992). House Prices, Household Saving and Financial Market Liberalization in Finland, European Economic Review, 36, 549-558.
Lehmussaari. O.P., (1990). Deregulation and Consumption: Saving Dynamics in the Nordic Countries, IMF Staff Papers, March, 37, 1, 71-93
Loayza N., K. Schmidt-Hebbel, and L. Serven (2000). What Drives Private Saving Across the World? Review of Economics and Statistics, May 2000, 82(2) :165-181
McKinnon, Ronald I., (1973). Money and Capital in Economic Development, (Washington:The Brookings Institution).
Mehran H., P. Ugolini, J.P.Briffaux, G Iden, T. Lybek, S. Swaray, and P. Hayward, (1998) Financial Sector Development in Sub-Saharan African Countries, Occasional Paper 169, International Monetary Fund
Miles, D, (1992). Housing Markets, Consumption and Financial Liberalization in the Major Economies, European Economic Review, 36, 1093-1136
Nissanke M. and E. Aryeetey(1998) Financial Integration and Development: Liberalization and Reform in Sub-Saharan Africa, Routledgde
Ogaki M., J.D. Ostry and C.M. Reinhart, (1996) Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison, IMF Staff Papers, Vol. 43, No 1, pp. 38-71
Reinhart, C. Accounting for Saving: Financial Liberalization, Capital Flows, and Growth in Latin America and Europe, (Washington DC: John Hopkins University Press for the Inter-American Development Bank,1999).
Rossi, Nicola, "Government Spending, the Real Interest Rate and the Behavior of Liquidity Constrained Consumers in Developing Countries," IMF Staff Papers, Vol. 35, (1988), pp. 104-40.
Savastano, Miguel, "Private Saving in Fund Programs," (Unpublished manuscript, IMF (1994)).
Schmidt-Hebbel, Klaus, Steven B. Webb, and Giancarlo Corsetti, "Household Saving in Developing Countries: First Cross-Country Evidence," The World Bank Economic Review, Vol. 6, (1992), pp. 529-47.
Shaw, Edward, (1973). Financial Deepening in Economic Development, (New York: Oxford University Press).
Wold Bank (1994) Adjustment in Africa: Reforms, Results and the Road Ahead , Oxford University Press
Vaidyanathan, G. (1993). "Consumption, Liquidity Constraints and Economic Development," Journal of Macroeconomics, Vol. 15, 591-610.