THE EFFICACY OF FINANCIAL LIBERALIZATION IN IVORY COAST

This paper examines the role of financial liberalization policies in the Ivory Coast. The study incorporates both the interest rate liberalization and capital account liberalization. The paper finds that financial liberalization policies have had positive effects in the Ivory Coast. This supports the numerous past studies, which have all reported positive results regarding the effects of financial liberalization policies. However, as in many other countries, the financial liberalization policy in the Ivory Coast has brought with it a number of interrelated problems, which need to be addressed by the government. These include, amongst others, a drastic increase in imports and reduction of credits to the productive sectors of the economy. The paper, however, concludes that financial liberalization polices have mainly had positive effects on the Ivorian economy.