This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that mimics the financial sectors prevailing in most low-income developing countries. The paper emphasizes the importance of treating the lending and deposit rates of interest as...

In this paper, we examine how the business and interest rate cycles in developed countries affect FDI to developing countries. After aggregating flows into three big source areas (the U. S. , Europe and Japan), we find FDI flows to be countercyclical with respect to both output and interest rate...

Die hohe Auslandsverschuldung zwingt viele Entwicklungsländer, ausländische Kredite durch heimische Ressourcen zu ersetzen. Entsprechend gewinnt die Mobilisierung von zusätzlichem inländischen Sparkapital für die Entwicklungsfinanzierung an Bedeutung. In der Literatur, die sich mit den...