Financial Development and Economic Growth
This paper examines the financial development of the Italian economy and measures its effects on its economic growth and compares it to the U.S. financial market.
# 7094 | 2,510 words | 3 sources | APA | 2002 |
Published on Feb 07, 2003 in Business (Finance, Investment and Banking) , Business (International) , Economics (National)
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The following paper compares the GDP growth rates of Italy and the U.S. measures the level of financial development made by both the markets. Finally it examines whether the economy making higher growth with respect to financial development has made higher economic growth. The reason for choosing the Italian economy for comparison is that it is a lesser developed financial market as compared to the United States.
From the Paper:"There has been a lot of research already done on the issue of identifying a relationship between financial development and economic growth. The questions like does financial development spurs economic growth? To what extent does higher growth induce a reduction in the incidence of poverty? What can financial development contribute in reducing poverty? are continuously part of the economists debate. Generally it is believed that Economic growth is simply the result of refraining from current consumption. Within an economy, there are two general types of commodities. One are the consumption goods and the others are the capital goods. The consumption goods are for the purpose of general consumers use while capital goods are used for production of other commodities. When in an economy there is a lesser consumption of consumption goods by the households, a considerable part of the income is not spent and the result is in the form of positive net savings."
Cite this Comparison Essay:
Financial Development and Economic Growth (2003, February 07) Retrieved May 28, 2022, from https://www.academon.com/comparison-essay/financial-development-and-economic-growth-7094/
"Financial Development and Economic Growth" 07 February 2003. Web. 28 May. 2022. <https://www.academon.com/comparison-essay/financial-development-and-economic-growth-7094/>