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

  • Abdullahi Dahir Ahmed
  • Sardar M. N. Islam
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

In the last chapter, our analysis has considered a theoretical model of imperfect competition in the commercial banking sector of the selected sub-Saharan African countries. Specifically, our discussions focused on determining the direction of interest rate spread following economic liberalization in the presence of a concentrated commercial banking environment. We also considered the issue of lack of entry by new ‘meaningful’ financial institutions, raising the possibility of high fixed (overhead) costs as a barrier to entry. The available anecdotal evidence also supported this theoretical claim.

Keywords

Interest Rate Banking Sector Real Interest Rate Saving Rate Investment Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.Centre for Strategic Economic Studies CSESVictoria UniversityMelbourneAustralia

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