Financial Systems, Risk Management, and Entrepreneurship: Historical Perspective

Posted: 1 Dec 2009

See all articles by Richard Sylla

Richard Sylla

New York University - Stern School of Business, Department of Economics

Date Written: 2003

Abstract

Evidence indicates that the most successful economies in the world tend to be those that have developed sophisticated financial systems that contributed to their sustenance, growth and development.The important role of financial systems in shaping the global economy is analyzed from the perspective of economic history. Important aspects of modern financial systems are discussed from an institutional perspective and the importance of modern economic systems to the global economic growth and modernization is highlighted. In addition to standard economic reasons, namely the ways in which good financial systems promote efficient resource allocation, the different ways in which modern financial systems promote economic growth by promoting more efficient risk allocation strategies that allow for efficient risk management strategies are discussed. It is argued that modern financial systems provide for better risk management strategies and in the long run contribute to the development of entrepreneurial activity and economic development. (VRS)

Keywords: Financial systems, Economic development, Risk management, Global economy

Suggested Citation

Sylla, Richard, Financial Systems, Risk Management, and Entrepreneurship: Historical Perspective (2003). Japan and the World Economy, Vol. 15, p. 447-458 2003. Available at SSRN: https://ssrn.com/abstract=1513135

Richard Sylla (Contact Author)

New York University - Stern School of Business, Department of Economics ( email )

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