COURSE DETAIL
This course discusses and analyzes the major challenges and current initiatives in the creation of finance industries appropriate to and effective in developing countries. The course focuses on the private financial sector and issues relating to access to finance. After a general overview, the course examines the forms of finance available for larger firms in developing countries, mainly the banking sector and the stock market. Subsequently, the course covers the evidence on the effects of financial development on economic growth and the role of institutional factors, such as corporate governance, in financial development. The course then examines the access to finance for smaller firms and households and the implications of a lack of access. Finally, the course touches upon private international sources of finance, namely private capital flows, FDI, and remittances to developing countries.