Economics

Finance for Development

Module code: L1082
Level 5
15 credits in spring semester
Teaching method: Lecture, Seminar
Assessment modes: Take away paper

This module discusses and analyses the major challenges and current initiatives in the creation of finance industries appropriate to and effective in developing countries. The module focuses on the private financial sector and issues relating to access to finance. After a general overview, the module begins by examining the forms of finance available for larger firms in developing countries, mainly the banking sector and the stock market. Subsequently, it 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. It then moves on to examine the access to finance for smaller firms and households and the implications of a lack of access. Finally, the module touches upon private international sources of finance, namely private capital flows, FDI and remittances to developing countries.

Module learning outcomes

• Have demonstrated a detailed knowledge and understanding of an appropriate number of specialised fields of economics (e.g. labour economics, development economics)
• Be able to use the power of abstraction to focus upon the essential features of an economic problem and to provide a framework for the critical understanding and evaluation of the effects of policy or other exogenous events.
• Be able to use the power of abstraction to focus upon the essential features of a finance problem and to provide a framework for the critical evaluation of the effects of policy or other exogenous events.
• Have learnt to communicate economic ideas, concepts and information across a range of topics using means of communication appropriate to the audience and the problem at issue.