The Effects of Financial Liberalization on the Growth of the Jamaican Economy

Aditi Shukla

Date of Award

2009

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Khemraj, Tarron

Keywords

Jamaica, Financial Liberalization, Oligopoly, Real Effective Exchange Rate

Area of Concentration

Economics

Abstract

This paper examines the role of financial liberalization in the nation of Jamaica and its effect on the economic development of the country. In particular, this paper investigates the important link between the oligopolistic structure of the nation's banks and the obstacles placed in the path to liberalization and globalization. This research involves an evaluation of the interest rate spread found as the difference between the loan and deposit rates of the nation. The paper also addresses the way in which the Jamaican real exchange rate reacted to an influx of foreign capital following liberalization of the financial sector. The findings associated with the study of the real effective exchange rate (REER) are in line with the results achieved by economist Dani Rodrik which suggest a positive correlation between the REER and the growth�defined by GDP growth�of an economy.

Rights

This bibliographic record is available under the Creative Commons CC0 public domain dedication. The New College of Florida, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.

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