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Soundness of Financial Instituitions and Economic Growth

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  • Gloria O. Pasadilla

Abstract

The paper surveys the relevant literature on why financial systems come about and the channels through which they influence real economic growth. Considering the relative frequency of financial crises among countries that liberalised their economies, the paper also examines the major factors that influence financial instability and why financial liberalisation has been strongly associated with financial crisis. It then applies this literature in the context of the recent meltdown in Asia.

Suggested Citation

  • Gloria O. Pasadilla, 2001. "Soundness of Financial Instituitions and Economic Growth," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp64, April.
    • Handle: RePEc:sea:spaper:sp64
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    File URL: http://www.seacen.org/GUI/pdf/publications/staff_paper/2001/SP64.pdf
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    Cited by:

    1. Bank Indonesia, 2007. "Financial Deepening to Support Monetary Stability and Sustainable Economic Growth," Occasional Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number occ47, April.

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