## Linkages Between Financial Variables, Financial Sector Reform and Economic Growth and Efficiency

_IMF Working Papers, October 1, 1995_

## Source details

**Canonical URL:** [Linkages Between Financial Variables, Financial Sector Reform and Economic Growth and Efficiency](https://www.imf.org/en/publications/wp/issues/2016/12/30/linkages-between-financial-variables-financial-sector-reform-and-economic-growth-and-1144)

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## Bibliographic details
- Authors: R. B. Johnston, Ceyla Pazarbasioglu
- Published: October 1, 1995
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451948110.001

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### Summary and Research Scope
- Analyzes channels through which financial variables and financial sector reform affect economic growth and efficiency.
- Uses panel data for 40 countries which reformed their financial systems.
- Hypothesized transmission channels:
  - The real interest rate representing the interest cost of capital.
  - The volume of intermediation.
  - Financial sector efficiency.

### Key Findings
- Financial reforms have structural effects on economies.
- Financial variables and reforms are important determinants of economic performance.
- The impact of financial reforms depends on whether countries did or did not face a financial crisis.
- The “quality” of financial sector reform matters for outcomes.

### Subjects and Keywords
- Subject: Commercial banks, Financial crises, Financial sector development, Financial sector reform, Real interest rates
- Keywords: crisis, crisis country, economic growth, efficiency, real interest rate, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/linkages-between-financial-variables-financial-sector-reform-and-economic-growth-and-1144_