Linkages Between Financial Variables, Financial Sector Reform and Economic Growth and Efficiency

This paper analyzes the different channels through which financial variables and financial sector reform can affect economic growth and efficiency, using panel data for 40 countries which reformed their financial systems. Financial sector reform is hypothesized to affect economic growth and efficien...

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Bibliographic Details
Main Author: Johnston, R.
Other Authors: Pazarbasioglu, Ceyla
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1995
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Linkages Between Financial Variables, Financial Sector Reform and Economic Growth and Efficiency  |c R. Johnston, Ceyla Pazarbasioglu 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1995 
300 |a 32 pages 
653 |a Economic & financial crises & disasters 
653 |a Depository Institutions 
653 |a Interest rates 
653 |a General Aggregative Models: General 
653 |a Commercial banks 
653 |a Money and Interest Rates: General 
653 |a Banks 
653 |a Finance 
653 |a Financial crises 
653 |a Banks and banking 
653 |a Financial sector reform 
653 |a Real interest rates 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Mortgages 
653 |a Banks and Banking 
653 |a Financial Markets and the Macroeconomy 
653 |a Financial services industry 
653 |a Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General 
653 |a Banking 
653 |a Financial sector development 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Financial Risk Management 
653 |a Financial services law & regulation 
653 |a Finance: General 
653 |a Financial Crises 
700 1 |a Pazarbasioglu, Ceyla 
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989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
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520 |a This paper analyzes the different channels through which financial variables and financial sector reform can affect economic growth and efficiency, using panel data for 40 countries which reformed their financial systems. Financial sector reform is hypothesized to affect economic growth and efficiency through three main channels: the real interest rate representing the interest cost of capital, the volume of intermediation, and financial sector efficiency. The results indicate that financial reforms have structural effects; that financial variables and reforms are important determinants of economic performance; that the impact depends on whether countries did or did not face a financial crisis; and that the “quality” of financial sector reform matters