Finance and Economic Growth in Developing Countries

First published in 1984, this study analyses contemporary research into the role of financial development as a means of accelerating the economic growth of developing countries. The author analyses both the ‘financial structuralist’ and ‘financial repressionist’ schools of thought in order to determine both the direction of causality between financial and real growth and the accuracy of the repressionists’ assertion that real interest rates and their stability do matter in the economies of developing countries.