Testing the Potential Impact of Economic Changes on Savings in African Countries

Abdullahi Dahir Ahmed () and Sardar M. N. Islam ()
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Abdullahi Dahir Ahmed: Victoria University
Sardar M. N. Islam: Victoria University

Chapter Chapter 6 in Financial Liberalization in Developing Countries, 2010, pp 175-219 from Springer

Abstract: Abstract In the last chapter, our analysis has considered a theoretical model of imperfect competition in the commercial banking sector of the selected sub-Saharan African countries. Specifically, our discussions focused on determining the direction of interest rate spread following economic liberalization in the presence of a concentrated commercial banking environment. We also considered the issue of lack of entry by new ‘meaningful’ financial institutions, raising the possibility of high fixed (overhead) costs as a barrier to entry. The available anecdotal evidence also supported this theoretical claim.

Keywords: Interest Rate; Banking Sector; Real Interest Rate; Saving Rate; Investment Rate (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-7908-2168-0_6

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DOI: 10.1007/978-3-7908-2168-0_6

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