Dafe, Florence (2015) Structural power and the political sources of central bank policy in developing countries. Doctoral thesis (PhD), University of Sussex.

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Abstract

There is a wide variation in central bank policy stances across developing countries:
Some central banks emphasise stability, in both prices and the financial system; some
emphasise financial deepening; and some place equal emphasis on both goals. This
thesis explores the argument that those who control the sources of finance on which
countries rely for investment shape central bank policy stances. The argument has its
roots in the theory of the structural power of capital; a theory which has remained
under-explored for developing countries. This thesis seeks to contribute to the literature
on structural power by further developing and probing the structuralist theory in the
context of developing countries, notably those dependent on aid and natural resource
rents. Combining insights from the literature on structural power and on the economic
and political correlates of aid and natural resource dependence, I explore whether and
how those who control the sources of finance on which countries rely for investment
shape central bank policy stances. To explore these questions the thesis employs a
combination of qualitative and quantitative methods. First, I use case studies from
Kenya, Nigeria and Uganda to shed light on the mechanisms through which variations
in a country’s major sources of investible funds induce changes in the stance of central
bank policy. Second, I explore the relationship between dependence on aid and on
natural resources and the stance of central bank policy econometrically, using crossnational
statistical analysis. The statistical analysis contributes to theory-building by
developing quantitative measures of key theoretical concepts and probes structuralist
theory by examining the generalisability of the findings of the case studies.
Collectively, the evidence presented in this thesis suggests that power rooted in the
control of capital helps to account for central bank policy stances. The results of my
research contribute to extending the theory of the structural power of capital to finance
in developing countries and to the debate about the costs and benefits of different
economic development strategies.

Item Type:	Thesis (Doctoral)
Schools and Departments:	Institute of Development Studies
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Depositing User:	Library Cataloguing
Date Deposited:	16 Jun 2015 11:31
Last Modified:	23 May 2017 07:31
URI:	http://srodev.sussex.ac.uk/id/eprint/54543

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