Book ChapterDOI
Financial Liberalization, Financial Development and Economic Growth: An Analysis of the Financial Sector of Bangladesh
Monzur Hossain
- pp 395-418
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TLDR
In this article, the authors reviewed the process of financial liberalization that has taken place over time and assessed its impact on the financial sector development and economic growth, and cast doubt on the positive role of the financial liberalisation on the efficiency and competitiveness of financial sector.Abstract:
This chapter reviews the process of financial liberalization that has taken place over time and assesses its impact on the financial sector development and economic growth. Financial liberalization in the 1990s improves all the indicators of financial development, and as a result the financial system of Bangladesh has widened and deepened. The average credit, deposit and broad money to GDP ratios increased substantially from 6.6 percent, 14.9 percent and 19.0 percent, respectively, during 1976–1980 to 38.05 percent, 41.84 percent and 50.8 percent in 2012. Investment and per capita income also display a similar increasing pattern reflecting a close association with financial development. However, analysis casts doubt on the positive role of financial liberalization on the efficiency and competitiveness of the financial sector.read more
Citations
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Journal ArticleDOI
Financial Development and Economic Growth Nexus: A Revisionist Approach
TL;DR: In this paper, the authors highlight some of the salient issues and controversies surrounding the relationship between financial development and economic growth, from both the theoretical and the empirical fronts, and conclude that financial development always leads to economic growth should be taken with extreme caution.
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Optimal branching strategy, local financial development, and SMEs’ performance
TL;DR: In this article, the authors examined whether and to what extent development of the local-level financial sector improves SMEs' performances and showed that an optimal number of bank branches in an area works as an instrument of the transmission channel from financial development to growth, which helps reduce excess liquidity and increase SMEs access to bank credit by creating links between the demand and supply of liquidity.
Journal ArticleDOI
Determinants of Financial Liberalization in SAARC Region
TL;DR: In this article, the authors examined the determinants of financial liberalization in SAARC (South Asian Association for Regional Cooperation) countries over a time span of 48 years i.e. 1970 to 2018.
Journal ArticleDOI
Banking sector performance and FDI inflows in Bangladesh: exploring the unexplored
TL;DR: In this paper , the authors employed the autoregressive distributed lag (ARDL) model for analyzing the time series data collected from reliable sources and found that sound performance of the banking industry appears to be counterproductive for FDI inflows, which is a bit unconventional insight.
References
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Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
Book
Money and capital in economic development
TL;DR: In this paper, the authors present a theory of economic development very different from the "stages of growth" hypothesis or strategies emphasizing foreign aid, trade, or regional association, focusing on the use of domestic capital markets to stimulate economic performance.
Posted Content
Microfinance and poverty - evidence using panel data from Bangladesh
TL;DR: In this paper, the authors used household level panel data from Bangladesh and found that micro-finance benefits the poorest and has sustained impact in reducing poverty among program participants, but the effect is more pronounced in reducing extreme rather than moderate poverty.
Journal ArticleDOI
Microfinance and poverty : evidence using panel data from Bangladesh
TL;DR: In this article, the authors used household level panel data from Bangladesh and found that micro-finance benefits the poorest and has sustained impact in reducing poverty among program participants, but the effect is more pronounced in reducing extreme rather than moderate poverty.
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