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

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


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.


Interest Rate Banking Sector Real Interest Rate Saving Rate Investment Rate 
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© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.Centre for Strategic Economic Studies CSESVictoria UniversityMelbourneAustralia

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