The allocative efficiency of the formal versus the informal financial sector

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An important reason for the disappointing effects of the financial reform programmes, as part of the structural adjustment programmes in sub-Saharan Africa, stems from the strong focus of the adjustment programmes on the formal banking sector. A financial reform programme which does not explicitly employ the knowledge of the informal financial sector may lead to a sub-optimal allocation of resources and hence may not improve the quality of investments.

Original languageEnglish
Pages (from-to)163 - 165
Number of pages3
JournalApplied Economics Letters
Issue number3
Publication statusPublished - Mar-1996



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