Productivity Growth and Financial Environment in Selected Developing Countries

Abstract

EconomistsРІР‚в„ў interest in the relationship between financial sector development and growth dates back to Schumpeter (1912) who argued that a countryРІР‚в„ўs financial system plays a critical role in technological innovation and economic growth and development through mobilizing savings, monitoring managers, evaluating projects, managing and pooling risks, and facilitating transactions. Goldsmith (1969) and McKinnon (1073) investigated further this relationship on a country-case basis and confirmed that better functioning financial systems, as described by Schumpeter, were supportive of faster growth. Financial environment can be defined as the markets which are created because of the trading of financial securities. Basically, a financial environment comprises of the public sector enterprises, legal authorities, fiscal authorities which are directly or indirectly impact the financial system, monetary institutions, financial institutions, and official organizations. All these organizations have a direct impact on the financial system of the companies including private and public.

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: nomads, migration, livelihood sustainability, multi-criteria decision model

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References

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