As a result of the liberalization of the 1980s, the financial system has acquired a prominent role in developing economies. It is now conventional wisdom that `financial liberalization' is the means to stimulate economic development. Investment Finance in Economic Development challenges this assumption and offers an alternative view. The book prese

chapter |4 pages


chapter |21 pages

Finance and economic development

The dominance of the prior-saving argument

chapter |21 pages

Departing from the prior-saving argument

Finance in a monetary production economy

chapter |16 pages

From theory to evidence

chapter |30 pages

Towards the lost decade

The financial system in the imbalanced growth (1973-83)

chapter |8 pages


chapter |17 pages


chapter |22 pages

Statistical appendix