China Economic Review 17 — Financial development and economic growth: Evidence from. Kenya is undeniable, while its effects on economic growth are no more mysterious; rather, they are rapidly. This thesis explores the long run relationship between financial development and economic growth using time series modeling. For each of the four case-countries three types of Vector Autoregression VAR models will be developed except for the case of Serbia where only VAR related to credit institutions development will be developed since data related to stock market development indicators were unavailable to author. First, bivariate VAR model to explore the connection between credit institutions development and economic growth. Second, bivariate VAR model to explore the connection between stock markets development and economic growth.
Financial Development And Economic Growth Finance Essay
Relationship Between Financial Development And Economic | Bartleby
Introduction Economic growth is the most influential tool for decreasing poverty and refining the value of life in evolving countries. Evolution can produce honorable circles of wealth and opportunity. High and sustainable economic growth is the main condition for the sustainability of economic development and increase prosperity. As the population increases each year, the consumption is also increasing. Further more, demand, supply and population growth also require employment growth as a new source of income, because if not so then economic growth will lead to poverty.
Phd Thesis On Financial Development And Economic Growth
On the contrary. However, there is no requirement that the standards set in a particular country have to be completely identical to those provided by the IAASB. Both the US and China are powerful world leaders with their hands in investments all around the globe. As there is always a risk of financial reporting fraudulency, it is essential that each country has their own standards when it comes to conducting an audit in their country. The financial crisis in , having resulted from a tremendous bubble in the real estate market as well as highly leveraged banks and governments, has now become a debt crisis and is still an important in political discussions worldwide.
This can be explained by the fact that stock markets are a relatively new concept compared to banks. In the last three decades availability of data regarding capital markets and increase in theoretical literature suggests that well functioning stock markets can play an important role in economic development has spured research. Growth theory attempts to model and understand the factors that are behind this process. It is a particularly challenging area of research because growth is extremely uneven in space as well as in time.