REVUE DE LITTERATURE THEORIQUE ET EMPIRIQUE DE L’IMPACT DE LA LIBERALISATION FINANCIERE SUR L’EPARGNE
Creators: name: DAOUDIM, Meryem
name: AKAABOUNE, Mohammed
Publisher: name: Finance & Finance Internationale
Year: 2019
Subjects: Financial liberalization, savings.

description: The mobilization of the households’ savings represent one of the major strategies of public and private institutions in order to promote the investment and growth. The implementation of these strategies requires a rather precise analysis of the determinants and assignments of savings on the one hand, and the impact of financial liberalization on the mobilization of savings on the other hand. Since the years 1950, the developing countries and developed countries knew a phase of administration of interest rates and financial system, which had fatal consequences on the growth, according to American authors R. Mac Kinnon and E. Shaw. This interventionist political in the monetary and financial field was described by these authors as financial repression. This had as a consequence: scarcity of savings and weakness of the investment as well at the quantitative level as qualitative. To avoid the consequences of financial repression, these authors proposed financial liberalization as solution to support the growth. The objective is to ensure a healthy and more considerable economic growth at the same time by the improvement of savings’ level and the quantity and quality of investment. This thesis caused positive reactions but also criticisms (the Post Keynesians and the post structuralist). However, the most important criticisms are those of J.Stiglitz and A.Weiss. These will push Mac Kinnon to re-examine at the beginning of the 1990s its conclusions of 1973. So our research question is to know how financial liberalization influences households’ savings. Thus, our paper proposes to review the various theoretical and empirical studies treating and analyzing the impact of financial liberalization on households’ savings. To treat this problematic we will see in a first point the effect of financial liberalization on savings on the theoretical level. The second point will present an empirical review of literature about the subject. On the theoretical level, the effect of financial liberalization on savings remains more or less ambiguous, because of the multidimensional and reversible aspect of the process. Some points like the liberalization of interest rate and the offer of new financial products can act positively on savings. On the other hand, other points can proceed in the opposite direction. Therefore, The Net impact on savings depends on the direction and the weight of these two dimensions of financial liberalization. As it was mentioned by Bandiera and al. (1999), the long-term effect of financial liberalization on savings can be different from the effect observed when the reforms have just been established (short-term effect). Empirical work on this subject is not conclusive and sometimes against intuitive. These empirical validations are sensitive to the nature of the mobilized data and certain geographical surfaces. Also, the econometric instrument used and the subjacent assumptions can change the results radically. That works belong to two distinct approaches: • The first tries to answer the question by estimating a function of aggregate savings then testing the elasticity of this one in relation to real credit interest rate; • The second approach innovates by building proxy collecting the financial development or financial liberalization. Financial liberalization did not generate the expected positive results, the concept gradually evolved. This evolution was done around two principal poles: the awareness of the state of the economy and the integration of the new theories appeared these twenty last years. The failures of these policies were allotted to the absence of prerequisites necessary to their successes. So what remains of financial liberalization?
description: Finance &amp; Finance Internationale, No 15 (2019)