MODELISATION THÉORIQUE DE L'IMPACT DES INVESTISSEMENTS DIRECTS ETRANGERS SUR LE DEVELOPPEMENT FINANCIER

Abstract

Many developing countries have consolidated their efforts to undertake the financial sector reforms that have
been needed for the past decade. These reforms include restructuring and privatizing public sector banks and
opening up banks' capital for foreign participation.
In this article, after having explained briefly in Section2, the interaction between real and financial sectors, we
will analyze, in Section 3, the impact of the introduction of foreign capital in the local banks capital via
theoretical modeling. In this context, we will study the effect of foreign capital on informal finance, savings rate
and financial developing. Finally, the conclusion summarizes the contributions of our theoretical model and
some policy recommendations will be given.