The Role of Financial Policies in the Economic Growth of Emerging Economies (A Case Study of India and China)
63 Pages Posted: 23 Nov 2021
Date Written: 2003
"Financial markets don‟t just oil the wheels of economic growth … they are the wheels of economic growth."
It has been well recognized that the development of financial intermediation is strongly positively associated with economic development. On the one hand, low-income countries usually have very primitive financial systems. In these systems, most of the financial intermediation is performed by the commercial banks. Financial markets may be less developed of nonexistent. On the other hand high-income countries usually have more complex financial system that act as the intermediaries among considerable number and variety of financial trade.
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