Tis article encompasses various aspects of financial market liberalisation including the historical evidences of market deregulation, empirical studies on the impact of such liberalisation on economic growth and development. The article also discusses the problem of financial fragility connected with financial sector reform and briefly reviews the theoretical underpinnings. Finally the article discusses the role of the state in mitigating the problems connected with financial sector liberalisation.
Get full access to this article
View all access options for this article.
References
1.
CaprioGerardJr., & DanielaKlingebiel (1996): ‘Bank Insolvency: Bad Luck, Bad Policy or Bad Banking?’ In proceedings of the Annual Bank Conference on Development Economics, World Bank, Washington D.C.
2.
Demirguc-KuntA. and DetragiacheE. (1998): Financial Liberalisation and Financial Fragility, I.M.F. Working Paper No. 98/83.
3.
Demirguc-KuntA. and MaksimovicV. (1996): Financial Constraints, Uses of Funds and Firm Growth: An International Comparison, mimeo, World Bank, Washington D.C.
4.
LevineRoss and KingR. G. (1993): “Finance, Entrepreneurship and Growth: Theory and Evidence”, Journal of Monetary Economics, Vol. 32(3).
5.
LevineRoss and SaraZervos (1998): “Stock Markets, Banks and Economic Growth”, American Economic Review, Vol. 88, June.
6.
McKinnonR.I. (1973): Money and Capital in Economic Development, Brookings Institution, U.S.A.
7.
MishkinF.S. (1996): “Understanding Financial Crisis: A Developing Country Perspective” in Proceeding of the Annual Bank Conference on Development Economics, World Bank, Washington D.C.
8.
KhatkhateDeena (1998): “Timing and Sequencing of Financial Sector Reforms”, Economic and Political Weekly, July 11.
9.
RajanR. and ZingalesL. (1997): Financial Dependence and Growth, mimeo, (Chicago: University of Chicago).
10.
RakshitM. (1994): Issues in Financial Liberalisation, Economic and Political Weekly, September 24.
11.
ShawE.S. (1973): “Financial Deepening and Economic Development”, Oxford University Press, New York.
12.
StiglitzJ. E. & WeissA. (1981): “Credit Rationing in Markers With Imperfect Information”, American Economic Review, June, 70.
13.
StiglitzJ. E. & WeissA. (1981): “Incentive Effects of Terminations: Applications to Credit & Labour Markets”, American Economic Review, 70.
14.
StiglitzJ. E. & WeissA. & GreenwaldB. C. (1984): “Information Imperfections in the Capital Market and Macroeconomic Fluctuations”, American Economic Review, 73.
15.
StiglitzJ.E. (1994): “The Role of the State in Financial Markets” In proceedings of the Annual Bank Conference on Development Economics, 1993, World Bank, Washington D.C.
16.
DavidWheelock & KumbhakarSubal C. (1995): “Which Banks Choose Deposit Insurance? Evidence of Adverse Selection and Moral Hazard in a Voluntary Insurance System”, Journal of Money Credit & Ranking, Vol 27, No. 1, February.
17.
World Bank (1998): World Development Report, Washington D.C.
