Interest Rate Liberalization and Economic Growth in Zambia: A Dynamic Linkage

Interest Rate Liberalization and Economic Growth in Zambia: A Dynamic Linkage

This paper examines the dynamic impact of interest rate reforms on economic growth in Zambia—using two models in a stepwise fashion. In the first model, the efficacy of interest rate liberalization is examined by regressing the interest rate on the level of financial deepening. In the second model, the causal relationship between financial depth and economic growth is examined by incorporating ...

Effects of Financial Liberalization on Macroeconomic Volatilities: Applications to Economic Growth, Exchange Rate and Exchange Rate Pass-Through

Financial Repression and Interest Rate Liberalization in China

China has been experiencing financial repression for a long time. The main feature of this repression is a regulated interest rate system. This results in private firms’ low likelihood of getting money from the official banking system, and at the same time seeded the emergence of the shadow banks, which introduces uncontrollable risks into the Chinese economy. Also, other policy goals, such as ...

Trade Liberalization, Privatization and Economic Growth

International Financial Liberalization and Economic Growth

This paper pulls together existing theory and evidence to assess whether international financial liberalization, by improving the functioning of domestic financial markets and banks, accelerates economic growth. The analysis suggests that the answer is “yes.” First, liberalizing restrictions on international portfolio flows tends to enhance stock market liquidity. In turn, enhanced stock market...