This book studies the impact of different sources of external
finance on growth and development in different country contexts. An
important finding of the study is that 'success' or 'failure' in
the productive use of external and domestic financial resources
cannot be explained on the basis of single factors such as external
shocks or 'bad' versus 'sound' policies. Rather, they are outcomes
of complex interactions between changes in exogenous factors (such
as fluctuations in external finance and trade shocks), existing
economic structures and the responses to shocks by domestic public
and private sector agents. This finding also implies that there are
no recipes in economic policy-making which are generally
applicable; the 'best' policy has to be designed specifically for
each country.
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