The investigation of the relation between financial development and economic development: reviews, appraises, and critiques theoretical and empirical research
Year: 2012
Type: preprint
Abstract: A B ST R A C T This paper reviews, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth. It describes the role of financial system development in economic growth at the macro level, both theoretically and empirically. It also describes briefly the relationship of corporate finance and firm performance. It finally concludes the review and presents some policy implications in view of the reviewed literature. Furthermore, theory and evidence imply that better developed financial systems ease external financing constraints facing firms, which illuminates one mechanism through which financial development influences economic growth. The paper highlights many areas needing additional research.
Source: SSRN Electronic Journal
Authors: Alireza Rostami, Kamran Nazari, Mostafa Emami
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2216842938