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Title: |
Liberalization of the Domestic Financial
Market: Theoretical Issues with Evidence from Sri Lanka |
| Author: |
Athukorala,
Premachandra; Rajapatirana, Sarath |
| Author
Affiliation: |
La Trobe U;
World Bank |
| Source: |
International Economic Journal, Winter 1993, v. 7, no. 4, pp. 17-33 |
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Publication Date: |
Winter 1993 |
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Abstract: |
The failure of financial liberalization
reforms in several developing countries in recent years has led to a
reassessment of the McKinnon-Show financial liberalization paradigm. The
purpose of this paper is to delineate the key issues of the debate and
to throw some light on them by systematically tracing out the Sri Lankan
financial policy reforms initiated in 1977. Our results challenge the
neo-structuralist proposition that financial liberalization is merely a
theoretical aberration unrelated to the objective conditions of
developing countries and suggest that the lackluster outcome of reforms
emanates mostly from their half-hearted nature, and policy
inconsistencies and mistakes that crop up in the implementation process. |
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