We estimate a model of investment under financial restrains due to Demetriades and Devereux (2000), using total and private aggregate investment data from 38 high income and low income countries during 1972-2002. Our main findings for the overall sample are that (i) the US real interest rate is...

While bank liabilities in Sub-Saharan Africa are found to follow (but not lead) economic growth, the link between bank credit and growth is altogether absent.

We use cointegration analysis of a new longitudinal legal dataset to show that strengthening creditor rights in India during the 1990s and 2000s led to an increase in bank credit, supporting the view that legal systems can shape financial development.

This paper examines the financial liberalization choices available to Cyprus on the road to EU membership. It argues that the central bank’s proposal of full and immediate liberalization of interest rates and capital inflows entails a number of hidden dangers for the stability of the...