by Cardiff Business School, Department of Financial and Banking Economics in Cardiff .
Written in English
|Statement||by Niels Hermes and Robert Lensink.|
|Series||Financial and banking economics discussion paper series / Cardiff Business School, Department of Financial andBanking Economics -- no.2/3/B, Financial and banking economics discussion paper (Cardiff Business School, Department of Financial and Banking Economics) -- no.2/3/B.|
nancial system and economic growth, de-signing optimal financial sector policies is critically important. A rigorous discus-sion of these policies, however, would require a long article or book by itself.5 Instead, this paper seeks to pull together a diverse and active literature into a co-herent view of the financial system in economic growth. The expectation is that the financial sector is related to the economic growth through the belief that it is essential in providing funds for capital accumulation and the development of innovative technologies. The accumulation of capital and these technologies are fundamental drivers of the growth of an economy. Financial sector is world-wide considered the core component of the economic growth (Greenwood, ). This paper aims to present the impact of financial sector on economic growth in Kosovo. Channels through which the financial system is influencing the economic growth are first of all accumulation of the capital and the change in the productivity of production factors. The mere existence of the financial system influences Cited by:
Financial Sector Development and Economic Grow th: Evidence from Zimbabw e Rodriguez, F., and Rodrik, D., (), Trade P olicy a nd Economic Growth: A Skeptic’s Guide toAuthor: Godfrey Ndlovu. Financial markets are a key factor in producing strong economic growth because they contribute to economic efficiency by diverting financial funds from unproductive to productive uses. The origins of this role of financial markets Cited by: 5 DIFFERENT KINDS OF ECONOMIC SECTORS 10 The Primary Economic Sector 10 Labour Trends in the Primary Economic Sector 10 Agriculture 11 Fishing 12 The Secondary Economic Sector . relationships between financial markets and economic growth have been broadly analyzed in the literature and may be summarized under four hypotheses (Chuah & Thai, ). First, the conventional view of the supply-leading hypothesis postulates that the direction of causality flows from financial development to economic Size: KB.
national economy. 2. FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH. To understand why financial sector development may be positively related to economic growth, it is necessary to understand the critical function the sector provides to the economy. The financial sector . On the other hand, Iram and Nishat describe economic growth as the indicator of the health of the economy (Iram & Nishat, ). Foreign direct Investment stimulates economic growth of a country while the financial . financial sector development plays a vital role in facilitating economic growth and poverty reduction, and finds that these arguments are supported by a large body of empirical evidence from Cited by: It is a great pleasure and honour for me to join the Oesterreichische Nationalbank for its Economics Conference on "The Single Financial Market: Two Years into EMU". I would like to take the opportunity today to talk about the role of financial markets for economic growth. I shall first consider whether the design of the financial .