Financial liberalization boosts low income countries' economic stability and growth.
The article examines what affects the economy of low income countries. It looks at factors like government policies, foreign aid, and financial rules. The researchers found that making financial rules less strict can help these countries have more money from other countries. But if they make it easier for money to come in and out, they might end up with less money overall. When bad things happen, countries that don't let money move freely might end up with more money. Over time, foreign aid can lead to more imports and make the country's money worth less.