Financial liberalisation and banking crises in sub-Saharan Africa

Gamariel, Gladys

Financial liberalisation and banking crises in sub-Saharan Africa

Doctoral Thesis

2013

Publisher

University of Cape Town

Department

School of Economics

Faculty

Faculty of Commerce

Abstract

This study aims to investigate the causal effect of financial liberalisation policies on the stability of banking sectors in selected countries in Sub Saharan Africa (SSA). The study is motivated by theoretical emphasis on the competing in uence of financial liberalisation in fostering financial development, but also giving rise to financial systems that are more vulnerable to systemic risk. This thesis addresses critical issues concerning measures of nancial liberalisation used in empirical studies. While different research bodies have produced several liberalisation indices, most datasets cover developed and developing countries outside Africa. Most of the existing indices are therefore not useful in cross-country and panel studies in SSA. To address this measurement issue, this thesis constructs a new set of liberalisation indicators using country by country information on the timing of seven liberalisation policies. The study considers 12 SSA countries using the framework developed by Abiad et al. (2008). Thus, this study extends the financial liberalisation database of Abiad et al. (2008) from 14 to 26 SSA countries.

Description

Includes abstract.

Includes bibliographical references.

Keywords

Economics

Reference:

Collections

PhD / Doctoral

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