Financial sector development

About: Financial sector development is a research topic. Over the lifetime, 1674 publications have been published within this topic receiving 90787 citations.

Finance for Food

Abstract: This book reflects the current state of discussion about agricultural and rural finance in developing and transition countries. It provides insight into specific themes, such as commodity value chains, farm banking, risk management in agricultural banking, structured finance, crop insurance, mobile banking, and how to increase effectiveness in rural finance. Case studies illustrate various aspects of agricultural and rural finance in developing economies. The book is based on one of the yearly financial Sector Development Symposia held by the KfW Development Bank.

Lao PDR economic monitor : recent economic developments

Abstract: The Lao economy has performed relatively well in the midst of the global financial crisis, supported by higher than initially forecasted commodity prices and significant expansion in public outlays which have acted as a fiscal stimulus. The impact of the global financial crisis is felt through declining commodity export earnings, reduced Foreign Direct Investment (FDI) inflows and remittance income, as well as a decline in non-resource exports, especially agriculture. Real gross domestic product (GDP) growth in 2009 is projected to slow to about 6.4 percent, as the impacts of the global financial crisis are felt in the domestic economy. This impressive growth rate, the second highest in the East Asia region after China, was possible for the following reasons: first, the Laotian economy is relatively insulated from the global financial system and its exposure to global trade is relatively limited, thereby mitigating the direct impact of external shocks. Second, it has benefited from a sustained demand for exports (minerals from China, garments from Europe, electricity from Thailand) and for tourism services, and from lower energy (fuel) prices. Third, a significant fiscal stimulus also contributed in 2009 to sustain economic growth and to compensate for the decline in foreign investment. This fiscal stimulus was driven by increased on-budget expenditures (wages and domestic capital spending) and by off-budget quasi-fiscal spending by the Bank of Laos financing local public infrastructure projects.

Development in Sub-Saharan Africa

Abstract: he relationship between domestic financial market development and economic growth has been extensively covered in the literature It is generally agreed that there is a positive relationship between economic growth and financial sector development, although there may not always be agreement on the direction of causation The more modern functional approaches (see Levine, 1996 and Ul Haque, 2002) emphasise the point that the financial sector performs more functions than simply being a conduit for the mobilisation of saving These approaches highlight that policies should move beyond simply encouraging the growth of commercial banking It is also established (see for example Montiel, 2003) that financial markets develop as per capita income increases As the process of development proceeds, financial markets expand, although the nature of these markets may differ from country to country, depending on the policy, regulatory and legal infrastructure In general, commercial banks dominate the financial markets in developing countries (Ul Haque, 2002) The focus of this chapter will be on the role that financial markets and bond markets in particular can play in reducing a country’s external vulnerability as well as being an additional source of mobilisation of capital Financial crises are often caused or exacerbated by weaknesses in a country’s financial system It is argued that central to

Asymmetric effect of exchange rate volatility on trade balance in Nigeria

Abstract: The relationship between real exchange rate volatility and the trade balance has been a contentious issue since the fall of Bretton woods agreement of 1973, owing to the lack of unanimity on the effect. This article provides empirical evidence of the link between the real exchange rate volatility and the trade balance in the light of financial development, confirming the assertion that the effect is significantly dependent on the country's level of financial development. Due to Nigeria's relatively undeveloped financial system, its exchange rate dampens the country's exports. Rather than studying the relationship in isolation, we examine the moderating role of financial development on the link between export and the real exchange rate volatility in this paper. The empirical estimation is based on the Nigeria's data set spanning the years 1980–2019, and it employs threshold autoregressive non-linear co-integration and non-linear ARDL estimation techniques. According to the findings, financial development magnifies the beneficial benefits of the real exchange rate on Nigeria's foreign trade. It also states that the uncertainty in foreign capital flows has a negative impact on Nigeria's international trade. The findings have broad policy implications, implying that in order to diversify and improve the economy's future growth and associated international trade, Nigeria's policymakers should promote adequate financial sector development, as financial shocks are amplified by poorly implemented credit markets.

The changing role of money in China and its implications

Abstract: Economic development is highly correlated with financial sector development. But the emergence, development, and economic implications of different financial structures are not well understood. This paper analyzes the emergence and development of China’s financial structure since the beginning of the economic reforms. By focusing on the functions of money, monetary policy, and financial intermediation, it argues that although agricultural and industrial reforms in the early 1980s have led to significant changes in the financial system, financial liberalization has progressed little since. The creation of new financial institutions and markets throughout the 1990s and the recent abandonment of some of the traditional administrative control instruments do not signify a systemic change as the underlying functions remain constrained.