scholarly journals Indian Financial Sector Reforms: A Corporate Perspective

1998 ◽  
Vol 23 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Jayanth R Varma
Keyword(s):  
Exchange Rates ◽  
Corporate Finance ◽  
Interest Rates ◽  
Financial Liberalization ◽  
Financial Sector ◽  
Financial Policies ◽  
Sector Reform ◽  
Slow Pace ◽  
Financial Sector Reform ◽  
The Government

Until the early 90s⁄ corporate finance managers in India were given very little freedom in the choice of key financial policies as the government regulated the pricing of debt and equity instruments and directed the flow of credit. Financial sector reform over the last six years has exposed managers to complex financial choices amidst increased volatility of interest rates and exchange rates, and made them accountable to an increasingly competitive financial marketplace. Nevertheless, the slow pace of financial liberalization so far has given Indian corporates the luxury of learning slowly and adapting gradually. Gradualism has also meant that there is a large unfinished agenda of financial sector reforms. According to Jayanth Varma⁄ Indian companies should now prepare themselves for further changes that lie ahead. The East Asian crisis is a warning for the Indian corporate sector to pursue more prudent and sustainable financial policies.

scholarly journals The Impact Of The Financial Sector Reforms On Savings, Investments And Growth Of Gross Domestic Product (GDP) In Ghana

2011 ◽  
Vol 7 (10) ◽  
Author(s):  
Gordon Newlove Asamoah
Keyword(s):  
Financial Institutions ◽  
Financial Liberalization ◽  
Financial Sector ◽  
Sector Reform ◽  
Reform Program ◽  
Financial Sector Reform ◽  
The Government ◽  
Investment Models ◽  
Recovery Program ◽  
The Impact

As part of reforms initiated in the mid 1980s, Ghanas financial sector was subjected to a major and extensive restructuring under two financial sector adjustment programs (FINSAP 1 and 2) and the reform for Non- bank financial institutions credit. Having determined that restructuring of the financial system was indispensable to the success of the Economic Recovery Program (ERP) begun in 1983, the government, embarked upon a financial sector reform program (FINSAP) in 1988. Against this background therefore there has been a wave of financial sector reforms partly in response to international political pressures and strive for globalization. This study was to examine financial liberalization as it was carried out in Ghana and to make an assessment of the impact of this policy on savings, investment and the growth of income (GDP) in the Ghanaian economy. This study attempted to investigate the question: How does financial liberalization affect interest rate, savings, investment and GDP in Ghana? Regression Analysis and savings-investment models were used to evaluate how the financial sector impacts on economic growth.

Political Capital: Mexican Financial Policy under Salinas

1998 ◽  
Vol 51 (1) ◽  
pp. 36-66 ◽  
Author(s):  
Timothy P. Kessler
Keyword(s):  
Interest Rates ◽  
Political Process ◽  
Economic Benefits ◽  
Financial Policy ◽  
Financial Policies ◽  
Degree Of Protection ◽  
Policy Making Process ◽  
The Government ◽  
High Degree ◽  
Exchange Rate Intervention

Market reform is advocated in developing countries to improve economic efficiency and prevent privileged groups from obtaining rents from the policy-making process. Yet this prescription fails to address the complex political process that governments are likely to confront when moving toward the market. This study shows how political considerations during President Salinas's administration distorted economic reform in Mexico.During the 1990s Mexican finance policy contradicted the government's declared neoliberal principles. While the banks were reprivatized and deregulated, they were also given a high degree of protection from competition, enabling the new owners to charge excessive interest rates. In addition, the government artificially inflated the value of the currency through exchange-rate intervention. These contradictory policies are best understood as a coherent political response to the electoral vulnerability of the ruling party (PRl) at the end of the 1980s. When viable political opposition threatened the PRl's ability to maintain power, it responded by using financial policies to distribute economic benefits to social groups, particularly business, the middle class, and the poor, whose support was critical for electoral victory.

scholarly journals Trends and Drivers of Agricultural Investments and Growth in Nigeria: The Pre and Financial Sector Reforms Experience

2014 ◽  
Vol 2 (3) ◽  
pp. 115-127
Author(s):  
Akpaeti Aniekan J ◽  
Bassey Nsikan E ◽  
Okoro Udeme S ◽  
Nkeme Kesit K
Keyword(s):  
Growth Rate ◽  
Growth Rates ◽  
Financial Sector ◽  
Least Square ◽  
Sector Reform ◽  
Agricultural Investment ◽  
Ordinary Least Square ◽  
Business Opportunities ◽  
Financial Sector Reform ◽  
Agricultural Investments

This study examined the growth rates in agricultural investments and output in Nigeria from 1970-2009 using ordinary least square in a time series analysis. Findings revealed that agricultural investments and growth recorded a growth rate of 37.44 percent and 30.47 percent in the pre-financial sector reform periods. The result for the financial sector reform periods showed a growth rate of 23.00 percent and 7.04 percent for agricultural investment and growth respectively. The differences in growth rates were not significantly different at 5 percent (tcal < ttab at P=0.5) between the periods. There was also deceleration in growth of agricultural investments in the two periods under consideration, implying that financial sector reform might have brought an overall decrease in agricultural investments in the two periods. Also, while there was stagnation in the growth process of agricultural output in the pre-financial sector reform periods, there was acceleration in the financial sector reform periods. Hence, policies and sound regulatory framework that would enhance the development of a strong, healthy and dynamic financial system should be pursued. Such policies should be tailored towards the provision of sound infrastructures and macroeconomic stability that would create incentives for agricultural investment and growth of business opportunities on a sustainable basis and foster the expansion of financial institutions.

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