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Financial Development in Bangladesh—A Test of the McKinnon-Shaw Model

Dados Bibliográficos

ID11401266
AutoresSyed M Ahmed (0009-0006-7488-1236, Red Deer College, autor correspondente), Mohammed I Ansari (Athabasca University)
Ano1995
Volume16
Fascículo2
Páginas291-302
Data de publicação1995-01-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoCanadian Journal of Development Studies/Revue canadienne d études du développement (JOURNAL)
Identificadores do periódicoISSN: 0225-5189 • E-ISSN: 2158-9100
EditoraInforma UK Limited (PUBLISHER • GB)
DOI10.1080/02255189.1995.9669598
OpenAlexW1992710494
IdiomaEN
Citações recebidas1
Referências citadas6

This paper empirically tests for Bangladesh the McKinnon-Shaw model of financial development. According to McKinnon, a basic complementarity exists between money and physical capital. That is, money balances and tangible investments are complements rather than substitutes. The McKinnon-Shaw model predicts that a high real interest rate policy will stimulate savings and investment and promote economic growth. This view stands in sharp contrast with the neostructuralist view which contends that lowering the interest rate will stimulate investment and economic growth. Results of the empirical tests, using annual data from 1973 to 1991, provide some support, albeit weak, for the McKinnon-Shaw hypothesis for Bangladesh

Capital (architecture · Complementarity (molecular biology · Economics · Geography · Growth model · Interest rate · Investment (military · Macroeconomics · Monetary economics · Banking stability, regulation, efficiency · Economic theories and models · Economic Theory and Policy

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Obras citantes distintas1
Citações por ano0,2
Intervalo de citações2021 - 2021 (1)
Velocidade de citaçãohistorical
Altamente citadoNão
Tipos de citaçãoNeutras: 1
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