Summary, Findings and Conclusion

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


The desirability of financial reforms and liberalization has been a controversial issue on the public agenda in developing countries. In the initial post-independence period and up until the late 1980s, extensive financial repression has been the norm in almost all developing countries in Asia and Africa. Major objectives of these excessive controls and high level government interventions were not only to correct market failures, but also to channel funds to high priority areas with a view to increasing productivity and maximizing social returns. However, there has been a strong claim that these suppressive financial policies have retarded the mechanisms that lead to economic development (World Bank, 1994). In response to this, many developing African countries have accepted the need to liberalize their financial systems in the early 1990s in order to promote growth and revive the process of successful economic performance. Some Asian countries including Thailand have also adopted financial liberalization to support economic development, financial efficiency and stability and global integration.


Volatile Exchange Rate Allocational Efficiency Private Saving Financial Liberalization Financial Reform 
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.


  1. Fry, M. J. (1995). Money, interest, and banking in economic development. Baltimore: The Johns Hopkins University Press.Google Scholar
  2. Hansanti, S., Islam, S. M. & Sheehan, P. (2008). International finance in developing countries: Emerging issues, models and welfare economics analyses. Heidelberg: Physica-Verlag.Google Scholar
  3. Hoeffler, A. E. (1999). “The Augmented Solow Model and the African Growth Debate”, CSAE, University of Oxford, Mimeo.Google Scholar
  4. Olomola, A. S. (1994). Financial liberalization and economic growth under structural adjustment in Nigeria. African Journal of Economic Policy, 1(1), 141–157.Google Scholar
  5. Stiglitz, J. E. (1994). The role of state in financial market. In M. Bruno & B. Pleskoric (Eds.), Proceedings of the World Bank Annual Conference on Development Economics, World Bank, Washington, DC.Google Scholar
  6. World Bank. (1994). Adjustment in Africa: Reforms, results and the road ahead. Oxford: Oxford University Press.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.Centre for Strategic Economic Studies CSESVictoria UniversityMelbourneAustralia

Personalised recommendations