Abstract
Egon Sohmen had an abiding faith in, and an uncompromising dedication to, free markets. While he devoted his life’s work to the application of the liberal credo to developed countries, it also has relevance to developing countries. This is shown in the present paper, which examines the need for financial liberalization in these countries.
Article Note
The author is indebted to Yoon Se Cho, Maxwell Fry, Alan Gelb, and Jacques Polak for helpful comments. He alone is responsible, however, for the contents of the paper, which should not be interpreted to reflect the views of the World Bank.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arrieta, Gerard M. Gonzales. 1989. “Interest Rates, Savings, and Growth in LDCs: An Assessment of Recent Empirical Research.” World Development May, 589–603.
Asian Development Bank. 1985. Improving Domestic Resource Mobilization through Financial Development. Manila: Asian Development Bank Economic Office. September.
Balassa, Bela. 1988. “The Effects of Interest Rates on Savings in Developing Countries.” Washington, D.C., World Bank, August, mimeo.
Chamley, Cristophe, and Quaizar Hussain. 1988. “The Removal of Taxes on Financial Assets in Thailand, Indonesia, and the Philippines: A Quantitative Evaluation.” Washington, D.C., June mimeo.
Cho, Yoon Je. 1988. “The Effect of Financial Liberalization on the Efficiency of Credit Allocation: Some Evidence from Korea.” Journal of Development Economics July: 101–10.
Corbo, Vittorio, Jaime de Melo, and James Tybout. 1985. “What Went Wrong with the Recent Reforms in the Southern Cone.” Development Research Department Discussion Paper No. 128, Washington, D.C., World Bank.
Edwards, Sebastian. 1986. “The Order of Liberalization of the Current and Capital Accounts of the Balance of Payments.” In Armeane M. Choksi and Demetrios Papageorgiou, eds., Economic Liberalization in Developing Countries. New York: Basil Blackwell, 185–216.
Edwards, Sebastian, and Mohsin S. Khan. 1985. “Interest Rate Determination in Developing Countries: A Conceptual Framework.” IMF Staff Papers, September, 377–403.
Fritz, Richard G. 1984. “Time Series Evidence of the Causal Relationship between Financial Deepening and Economic Development.” Journal of Economic Development, July, 91–112.
Fry, Maxwell J. 1988. Money, Interest, and Banking in Economic Development. Baltimore: The Johns Hopkins University Press.
Galbis, Vicente. 1977. “Financial Intermediation and Economic Growth in Less-Developed Countries: A Theoretical Approach.” Journal of Development Studies, January, 58–72.
Gelb, Alan. 1989. “A Cross Section Analysis of Financial Policies, Efficiency, and Growth.” PPR Working Paper No. 202, Washington, D.C., World Bank.
Goldsmith, Raymond W. 1969. Financial Structure and Development. New Haven: Yale University Press.
Gupta, Kanhaya L. 1984. “Financial Liberalization and Economic Growth: Some Simulation Results.” Journal of Economic Development, December, 25–44.
Gupta, Kanhaya L. 1986. “Financial Development and Economic Growth in India and South Korea.” Journal of Economic Development, December, 41–62.
Gupta, Kanhaya L. 1987. “Aggregate Savings, Financial Intermediation, and Interest Rates.” Review of Economics and Statistics, May, 303–19.
Harberger, Arnold C. 1985. “Lessons for Debtor Country Managers and Policy Makers.” In G.W. Smith and John Cuddington, eds., International Debt and the Developing Countries. Washington, D.C.: World Bank.
Jao, Y.C. 1976. “Financial Deepening and Economic Growth: A Cross-Section Analysis.” Malayan Economic Review, April, 47–58.
Jung, Woo S. 1986. “Financial Development and Economic Growth: International Evidence.” Economic Development and Cultural Change, January, 333–46.
Kapur, Basant K. 1976. “Alternative Stabilization Policies for Less-Developed Economies.” Journal of Political Economy, August, 777–95.
Khatkhate, Deena R. 1988. “Assessing the Impact of Interest Rates in Less Developed Countries.” World Development, May, 577–88.
Lanyi, Anthony, and Rüsdü Saracoglu. 1983. “Interest Rate Policies in Developing Countries.” Occasional Paper 22, Washington, D.C., International Monetary Fund.
Long, Millard. 1985. Review of Financial Sector Work. Washington, D.C.: World Bank.
McKinnon, Ronald I. 1973. Money & Capital in Economic Development. Washington, D.C.: The Brookings Institution.
McKinnon, Ronald 1. 1988. “Financial Liberalization in Retrospect: Interest Rate Policies in LDCs.” In Gustav Ranis and T. Paul Schultz, eds., The State of Development Economics: Progress and Perspectives. Oxford: Basil Blackwell, 386–410.
Mathieson, Ronald J. 1980. “Financial Reform and Stabilization Policy in a Developing Economy.” Journal of Development Economics, September, 359–95.
Patrick, Hugh T. 1966. “Financial Development and Economic Growth in Underdeveloped Countries.” Economic Development and Cultural Change, January, 174–89.
Polak, Jacques J. 1989. Financial Policies and Development. Paris: Development Centre of the Organization for Economic Co-operation and Development.
Shaw, Edward S. 1973. Financial Deepening in Economic Development. New York: Oxford University Press.
Stiglitz, Joseph, and Andrew Weiss. 1981. “Credit Rationing in Markets with Imperfect Information.” American Economic Review, June, 393–410.
Taylor, Lance. 1987. Structural Macroeconomics: Applicable Models for the Third World. New York: Basic Books.
Tun Wai, U. 1980. Economic Essays on Developing Countries. Rockville, Md.: Sijthoff & Noordhoff.
Wijnbergen, Sweder van. 1982. “Stagflationary Effects of Monetary Stabilization Policies: A Quantitative Analysis of South Korea.” Journal of Development Economics, April, 133–70.
Wijnbergen, Sweder van. 1983. “Interest Rate Management in LDCs.” Journal of Monetary Economics 433–52.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1992 Springer-Verlag Berlin · Heidelberg
About this paper
Cite this paper
Balassa, B. (1992). Financial Liberalization in Developing Countries. In: Giersch, H. (eds) Money, Trade, and Competition. A Publication of the Egon-Sohmen-Foundation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-77267-2_7
Download citation
DOI: https://doi.org/10.1007/978-3-642-77267-2_7
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-77269-6
Online ISBN: 978-3-642-77267-2
eBook Packages: Springer Book Archive