Impact of Financial Market Liberalization on the Ethiopian Economy
Impact of Financial Market Liberalization on the Ethiopian Economy

Author: Menelik Geremew

Publisher: LAP Lambert Academic Publishing

Published: 2013

Total Pages: 56

ISBN-13: 9783659360084

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This study analyzes the practical implications of financial market liberalization on Saving, Investment, Inflation and Economic Growth in Ethiopia, using time series data covering the period 1974 - 2004. The Johansen Maximum Likelihood Estimation Procedure is used to see the short and long run dynamics of macroeconomic variables and their response to a major policy shift from a closed command economy to a semi-open market economy. The Mckinnon-Shaw hypotheses is tested and used as a bench mark to compare the effect of removal of repressive policies and development of financial markets against the pre-reform pervasive government intervention policies in accelerating economic growth, increasing domestic saving and investment. The shifts in policy regimes are captured by period dummies in the regressions. The results indicate that saving is positively and significantly affected by the real deposit rate of interest and income growth. Domestic investment has a positive long-run equilibrium relationship with output growth whereas the real depreciation of the exchange rate and an increasing level of government debt are found to have a negative effect on private domestic investment.

The Effect of Financial Liberalization on Economic Development in Ethiopia
The Effect of Financial Liberalization on Economic Development in Ethiopia

Author: Omer Mohammed

Publisher: GRIN Verlag

Published: 2017-10-11

Total Pages: 177

ISBN-13: 3668546789

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Master's Thesis from the year 2016 in the subject Economics - Finance, grade: 2, Addis Ababa University (College of Bussiness and Economics), course: Accounting and Finance, language: English, abstract: This study aims to empirically examine the impact of financial liberalization on economic development in Ethiopia over the period of 1984-2014. In doing so, the ARDL approach to Co-integration and Error Correction Model were employed to investigate the long run and short run relationships. Accordingly, the empirical results obtained from the study indicate that financial widening has contributed significantly to the increase in saving and the level of economic growth. Even though, the total deposit happens to generate more investment; there is shortage of supply of credit. In addition, the study indicates financial widening and credit to the private sector exhibited a significant positive association with financial development while total banks credit bearing a significant impact on industrial development. However, the overall financial reform showed insignificant association both with economic growth and industrial development. The efficiency in allocating financial resources show significant positive association with share of banks credit to the private sector, however, the overall financial reform has positive insignificant impact on efficiency of resource allocation. The contribution of financial sector after the deregulation has a mixed result on welfare. In terms of catalyzing employment opportunity, financial widening and the overall liberalization policy measure have played a positive role while the financial development has no significant impact on employment creation. Financial widening has significant positive impact on poverty alleviation while the overall policy measure has insignificant impact on the impoverished. Consequently, the result of the study indicate the overall financial liberalization measure actually decrease the likelihood of financial instability and indicates the direction of causality going from economic growth to financial development proving the demand leading hypothesis, which in turn portrays the heavy involvement of government in the financial sector.

Financial Liberalization and Economic Development in Korea, 1980-2020
Financial Liberalization and Economic Development in Korea, 1980-2020

Author: Yung Chul Park

Publisher: Harvard University Press

Published: 2021-03-30

Total Pages: 375

ISBN-13: 9780674251281

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Korea's financial development has been a tale of liberalization and opening but the new system has failed to steer the country away from financial crises. This study analyzes the changes in the financial system and finds that financial liberalization has contributed little to grow and stabilize the Korean economy.

Financial Liberalization and Bank Performance in Ethiopia
Financial Liberalization and Bank Performance in Ethiopia

Author: Lelissa Tesfaye Boru

Publisher: LAP Lambert Academic Publishing

Published: 2014-12-11

Total Pages: 76

ISBN-13: 9783659619472

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The aim of the study is to assess the impact of financial liberalization on the ownership structure, market concentration and profitability performance of the Ethiopian banking industry. The study found out that the reform has brought a lot of remarkable changes on the structure and performance of the banking sector as compared with the situations prevalent before the reform period. However, as tested by both two firm concentration ratio and HHI using total deposits, loans, capital and assets, the banking industry in Ethiopia can still be distinguished by its market concentration towards the big government owned commercial banks and by a market characterized by little and insufficient competition.

Financial Development, Institutions, Growth and Poverty Reduction
Financial Development, Institutions, Growth and Poverty Reduction

Author: Basudeb Guha-Khasnobis

Publisher: Springer

Published: 2008-04-01

Total Pages: 337

ISBN-13: 0230594026

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This book explores country case studies and works that detail the exact transmission mechanisms through which financial development can enhance pro-poor development in order to derive best practices in this field. This is an important companion for professionals and policymakers, and also a vital reference source for students.

Trade Liberalization
Trade Liberalization

Author: Romain Wacziarg

Publisher: Edward Elgar Publishing

Published: 2018

Total Pages: 0

ISBN-13: 9781788111492

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This compelling two-volume collection presents the major literary contributions to the economic analysis of the consequences of trade liberalization on growth, productivity, labor market outcomes and economic inequality. Examining the classical theories that stress gains from trade stemming from comparative advantage, the selection also comprises more recent theories of imperfect competition, where any potential gains from trade can stem from competitive effects or the international transmission of knowledge. Empirical contributions provide evidence regarding the explanatory power of these various theories, including work on the effects of trade openness on economic growth, wages, and income inequality, as well as evidence on the effects of trade on firm productivity, entry and exit. Prefaced by an original introduction from the editor, the collection will to be an invaluable research resource for academics, practitioners and those drawn to this fascinating topic.