Skip to main content
Kent Academic Repository

Financing economic growth and development in Jamaica : 1960-1992

La Corbinière, Bernard F.C. (1997) Financing economic growth and development in Jamaica : 1960-1992. Doctor of Philosophy (PhD) thesis, University of Kent. (doi:10.22024/UniKent/01.02.85978) (KAR id:85978)


This thesis analyses the financing of economics growth and development in Jamaica during the period 1960-1992. In so doing, sources of both domestic and foreign finance are considered. Three main questions are examined. Firstly, the effects of financial liberalisation on the real economy are analysed and the predictions of financial liberalisation models evaluated. Secondly, the impact of external debt on domestic savings, investment and growth and the question of whether or not debt accumulation destabilizes the balances of payments, are considered. Thirdly, the effects of foreign capital inflows and outflows including capital flight, on the domestic economy as well as the extent to which economic growth is constrained by the balance of payments, are examined.

Chapter one deals with the financial and economic performances of Jamaica between 1960 and 1992. Three sub-periods are identified: the years of steady growth from 1960 to 1972; the period of prolonged crisis between 1973 and 1980, and the years of faltering recovery, 1981-1992. The social and economic policies of the various political administrations which governed Jamaica, as well as the role of the IMF and World Bank are explored in identifying some of the root causes of Jamaica's economic situation.

Chapter two examines the theory of financial liberalisation, the main hypotheses of which are tested in chapters three and four. Chapter three analyses the role of the real interest rate, the effect of reserve requirements on credit availability, and the impact of financial deepening on savings, investment and growth in Jamaica. Chapter four considers the effects of inflation on real and financial variables and the effects of government expansion on private sector access to bank resources, private investment and economic growth.

The net effect of capital inflows on economic growth, taking into account capital outflows, is considered in chapter five, as is the effect of capital flows on saving and investment. Chapter six considers the question of whether long run growth is constrained by the balance of payments, and finds that Jamaica's long run growth rate is in fact that rate of growth consistent with balance of payments equilibrium on current account.

The relevant theoretical and empirical literature pertaining to the various issues analysed, is briefly explored in each chapter before presenting the evidence on Jamaica. Chapter seven summarises and concludes the main findings of the thesis.

Item Type: Thesis (Doctor of Philosophy (PhD))
DOI/Identification number: 10.22024/UniKent/01.02.85978
Additional information: This thesis has been digitised by EThOS, the British Library digitisation service, for purposes of preservation and dissemination. It was uploaded to KAR on 09 February 2021 in order to hold its content and record within University of Kent systems. It is available Open Access using a Creative Commons Attribution, Non-commercial, No Derivatives ( licence so that the thesis and its author, can benefit from opportunities for increased readership and citation. This was done in line with University of Kent policies ( If you feel that your rights are compromised by open access to this thesis, or if you would like more information about its availability, please contact us at and we will seriously consider your claim under the terms of our Take-Down Policy (
Uncontrolled keywords: International commerce; international trade; Jamaica; economic growth
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
SWORD Depositor: SWORD Copy
Depositing User: SWORD Copy
Date Deposited: 29 Oct 2019 16:23 UTC
Last Modified: 16 Nov 2021 10:27 UTC
Resource URI: (The current URI for this page, for reference purposes)

University of Kent Author Information

  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.