External Finance and Adjustment: Success and Failure in the Developing World

External Finance and Adjustment: Success and Failure in the Developing World

by Karel Jansen, Rob Vos
     
 
This book studies the impact of different sources of external finance on growth and development in different country contexts. An important finding of the study is that 'success' or 'failure' in the productive use of external and domestic financial resources cannot be explained on the basis of single factors such as external shocks or 'bad' versus 'sound' policies.

Overview

This book studies the impact of different sources of external finance on growth and development in different country contexts. An important finding of the study is that 'success' or 'failure' in the productive use of external and domestic financial resources cannot be explained on the basis of single factors such as external shocks or 'bad' versus 'sound' policies. Rather, they are outcomes of complex interactions between changes in exogenous factors (such as fluctuations in external finance and trade shocks), existing economic structures and the responses to shocks by domestic public and private sector agents. This finding also implies that there are no recipes in economic policy-making which are generally applicable; the 'best' policy has to be designed specifically for each country.

Editorial Reviews

Booknews
Like any enterprise that depends on outside capital, many developing countries are finding major policy problems resulting from volatility in the flows of the external financing the governments consider essential for development. Economists here analyze how different types of capital flow have generated different types of adjustment problems, and examine the key features of the economic structures and economic policy responses that have determined success or failure in exploiting external finance as a catalyst for development. They find a major weakness in the inadequate recognition of the importance of institutionally determined market imperfection and rigidity at home and abroad. Examples include Mexico, Pakistan, the Philippines, and sub-Sahara Africa. Annotation c. by Book News, Inc., Portland, Or.

Product Details

ISBN-13:
9780312174729
Publisher:
Palgrave Macmillan UK
Publication date:
11/28/1997
Series:
International Finance and Development
Edition description:
1997
Pages:
475
Product dimensions:
6.10(w) x 9.25(h) x 0.07(d)

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