Financial Sophistication of SIDS
TAYLOR, DON
TAYLOR, DON
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Location research
Date
2016
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ISBN
I-4438-0997-7
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Abstract
Abstract
This paper intends to examine the role of financial intermediaries in the Caribbean as leading alternatives to the structural dependency on tourism, commodities and offshore finance. It posits that development favors growth that is endogenous and that drives local entrepreneurship and innovation in an island based self-sustainable manner.
Small island developing states are characterized by under developed financial structures that can place limits on economic development. Underdeveloped financial structures are often manifested by the relative shallowness of the local financial system and foreign ownership of those financial institutions. This may lead to an environment in which the financial system may not be responsive to local needs for long term investment capital. There is a dearth of research on whether the lack of endogeneity in local financial intermediaries has restricted access to capital or resulted in more expensive capital with the potential dampening effect on economic growth for small islands.
This paper is positioned as a research in progress and its objective is to identify the impact of capital sourcing on small island developing states (SIDS.) This research will be confined to the Caribbean and it is hoped that this research will add to the body of knowledge as it relates to economic and financial structures and development theory as it relates to SIDS. In addition the aim of this research is to inform the basis of policy guidelines to encourage entrepreneurship development in SIDS and to reduce the dependence on foreign direct investment flows (FDI) which sustains Caribbean islands vulnerability and fragility.
Citation
TAYLOR,D.(2016) Financial Sophistication of SIDS. Smith, L., Fullerton-Cooper,S. , Gordon E., and Bodden A.,(eds.), The Caribbean in a Changing World: Surveying the Past, Mapping the Future, Volume 2.Cambridge Scholars Publishing.ISBN (10): 1-4438-0997-7
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Cambridge Scholars Publishing
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https://hdl.handle.net/20.500.14473/1404