Financial Sector and Economic Development: A Survey
Asian Development Bank | September 1991
The paper attempts to survey the literature on the relationship between the financial sector and economic development. The survey indicates that financial liberalization has a strong positive impact on the mobilization of financial savings, although its impact on aggregate real saving remains controversial. Given the larger financial savings and the increased extent of financial intermediation, the impact of financial liberalization on economic development would depend largely on the efficiency of financial intermediation. Establishing a sound foundation for the financial system is, therefore, considered essential in improving the role of the financial sector in economic development. The paper also notes that there is a tendency for real interest races to become excessively high when they are liberalized under an unstable macroeconomic environment, implying that macroeconomic stability is an important prerequisite for successful financial liberalization.
CitationAsian Development Bank. 1991. Financial Sector and Economic Development: A Survey. © Asian Development Bank. http://hdl.handle.net/11540/3077. License: CC BY 3.0 IGO.
Regional Economic Development
Financial Sector Regulation
Economies in transition
Social responsibility of business
Cost and standard of living
Banks and bankingShow allCollapse