Does Financial Liberalization Really Improve Private Investment In Developing Countries?
- Topics:
- Equity
- Tags:
- Developing Country,
- Finance,
- Financial,
- Financial Planning,
- Financial Services,
- Free Trade,
- Interest Rate,
- Investment,
- World Bank Group
- Source:
- World Bank Group
FREE Registration is required
Overview: The author, focusing on the demand for capital goods, argues that the positive effect on the domestic credit market may be offset by the negative effect of a portfolio shift from capital goods and public bonds into monetary assets. The author also demonstrates that a policy of financial liberalization could increase the public sector ' s demand for domestic credit, thus limiting the funds available to the private sector. This crowding out does not result from a change in the government ' s behavior but from a shift in the portfolio of private agents. The author concludes that the effect of changes in interest rate policy on the demand for capital goods is weak in Argentina and might affect the quality of private investment more than its quantity.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 1,839KB | Date: Jul 1991 | Pages: 25
People who downloaded this item also downloaded
 |
Global Private Equity Report |
|
The Performance of Indian Banks During Financial Liberalization |
