Financial market liberalisation and economic growth in developing countries
Surely one of the most important tasks before developing countries is to achieve higher rates of economic growth. Consequently an important question that we must confront is why countries grow at different rates. In Chapter 10 we have discussed some of these reasons that range from differences in rates of technological progress across countries to factor accumulation and differences in research and development (R&D) profiles. Other reasons cited in the literature include differences in macroeconomic stability and in legal and other institutional structures. Surely, one can go on adding to this list but that would lead to a rather vacuous statement that differences in economic growth depend on a whole range of factors. A focused response would be more meaningful.