On successful completion of this module students should be able to:
Have a knowledge of financial institutions in developing countries
Understand the work between economic growth and finance
The sources of domestic and international finance
The causes of international financial crises
Aims
To provide students with subject skills, ie, macro and micro economic and financial analysis and transferable skills, eg, communication skills, research skills etc.
Brief description
The course will start by looking at financial institutions and markets in LDCs and then proceed to look at the relationship between finance and growth, the determinants of savings and financial repression and liberalisation in developing countries. It then will consider the impact of positive financial flows, such as foreign aid and negative financial flows such as capital flight. The course then considers the causes and consequences of the debt crisis in mid 1980s and the financial crisis of the 1990s in Asia and Latin America. Government budget deficits are often the cause of such crisis but it will be demonstrated that, especially in the case of the Asian crisis, it was not the culprit. Finally the course considers the informal credit markets and the macroeconomic impact of informal financial markets.
Content
Introduction
Financial institutions and markets in LDC's
Finance and economic growth
Savings and financial regression
Foreign aid
Capital flight
Debt crises
Informal markets
Transferable skills
More specifically by taking this module students will enhance several transferable skills. Attendance at lectures should help note taking. Essay writing will enhance writing as well as time management skills and problem solving. The debates should also enhance teamwork, communiction and presentational skills and reinforce further time management skills. The inclusion of web sites and encouragement to use the library fully should help to enhance basic IT and research skills.
Reading Lists
Books
D Rey (1998) Development Economics
Princeton University Press
P J Moneal, P R Agenor and N Ul Haque (1993) Informal Markets in Developing Countries
Blackwell
M F Fry (1995) Money, Interest and Banking in Economic Development
John Hopkins University Press
V Murinde (1996) Development Banking and Finance
Avebury