role of financial intermediaries in economic growth in less developed countries (LDC"s)
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role of financial intermediaries in economic growth in less developed countries (LDC"s) the case of eleven African countries by Enock J. M. Wiketye

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Published .
Written in English


  • Economics -- Developing countries.

Book details:

Edition Notes

Statementby Enock J.M. Wiketye.
The Physical Object
Paginationx, 150 leaves, bound :
Number of Pages150
ID Numbers
Open LibraryOL16571053M

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  Role of Financial Intermediaries role in Economic Development 1. Self-employment programme. Employment growth is a sign of economic development. Financial Intermediaries, by providing finance for starting self-employment programmes are generating more production and income in .   (). Financial intermediation and economic growth in less‐developed countries: A theoretical approach. The Journal of Development Studies: Vol. 13, Finance in Developing Countries Cited by:   The Conceptual Link Between the Financial System and Economic Growth: both decline exponentially as one moves from well-developed financial systems to less-developed financial systems. if the capital market were strong-form efficient even without financial intermediaries, the role for financial intermediaries would be extremely limited;. The purpose of this paper is to determine whether the development of the financial sector has been accompanied by economic growth in a sample of countries in Sub-Saharan Africa and to further investigate whether some causal pattern emerges which might lend support to the view that financial intermediation plays a central role in economic development.

The results, obtained in a cross-section framework including 37 developed and developing countries over the period –, confirm the relevance of financial development to promote economic.   Disintermediary: Anything that removes the "middleman" (intermediary) in a supply chain. A disintermediary often allows the consumer to interact directly with . The financial system is also particularly important in reallocating capital and thus providing the basis for the continuous restructuring of the economy that is needed to support growth. In countries with a highly developed financial system, we observe that a greater share . Economists in studying theories of economic growth in the s showed renewed interest. Robert Solow () and T. Swan () developed a model of economic growth. Solow-Swan model of development and growth has no role of financial intermediation. For all practical.

  Financial development has played a leading role in many economies of Less Developed Countries (LEDCs) and Africa especially. Although the relationship between financial development and economic growth has received widespread attention in the modern history of economics, the conclusions have been far from conclusive. Financial system’s role in Economic Integration Financial systems of different countries are capable of promoting economic integration. This means that in all those countries, there will be common economic policies, such as common investment, trade, commerce, commercial law, employment legislation, old age pension, transport co-ordination, etc. Early theoretical discussions of the relationship between financial development and economic growth, by Bagehot () and Schumpeter () recognized the role of financial intermediaries in allocation of resources to the most effective producers (Levine, ). Later in the 60ss Goldsmith (), McKinnon (), Shaw.   These sectors influence a nation's currency and interest rates. In developed countries, they work together to promote growth and avoid runaway price inflation. When a country is still in a developing stage, the lack of a strong, sound financial system generally works against the national economy.