The development of financial institutions, financial markets and financial instruments.
Published in Chapter:
The Relationship Between Financial Development, Innovation and Economic Growth
Asuman Koc Yurtkur (Bulent Ecevit University, Turkey)
Copyright: © 2019|Pages: 18
DOI: 10.4018/978-1-5225-7180-3.ch026
Abstract
Along with the globalization process, the relationship between the existence of an advanced financial system, financial development and economic growth has become one of the most debated issues. The financial system, development and development indicators, which play an important role in the overall success levels of the economy, are among the topics to be considered due to this importance. In this study, financial development, economic growth, and theoretical approaches are discussed. Moreover, the fact that the subject is empirically presenting evidence requires examination of this situation with studies in the literature. The presence of the findings obtained empirically, in particular Turkey's economy has made it necessary to include a large empirical literature. The generally accepted financial development indicators, which provide comparability in terms of countries, are examined in terms of financial markets and financial institutions in terms of depth, access, stability and efficiency during the period 2005-2015.
FAQs
Chapter 7. Financial development is the development of financial institutions, financial markets, and financial instruments.
What is the meaning of financial development? ›
Financial development is defined as a combination of depth (size and liquidity of markets), access (ability of individuals and companies to access financial services), and efficiency (ability of institutions to provide financial services at low cost and with sustainable revenues, and the level of activity of capital ...
What does global financial do? ›
Global finance refers to the financial activities and markets that occur on a worldwide scale. This includes international trade and investment, currency exchange rates, cross-border transactions, and the flow of capital between countries.
What do you mean by global financial system? ›
The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic action that together facilitate international flows of financial capital for purposes of investment and trade financing.
What is the meaning of development finance? ›
Development finance is essentially a loan that goes towards the purchase of land/construction costs of a development. Property development is never easy, but there is no reason why finding finance for it can't be.
What are the stages of financial development? ›
Six stages of financial development can be distinguished, corresponding to specific overall economic development attributes: (1) Pre-financial, (2) Financial embryogenesis, (3) Traditional monetary, (4) Transitional non-monetary, (5) Take-off financing, (6) Mature financial intermediation, and (7) Decaying financial ...
What is the impact of financial development? ›
The results of study show that financial development has an effect on economic growth high-income countries. This research emphasizes that financial development can encourage economic growth for countries that focus on building a strong financial sector by mobilizing capital, which is a necessity for economic activity.
What are the 7 principles of global finance? ›
The seven guiding principles are: (i) commitment from public and private sector organisations; (ii) a robust legal and regulatory framework underpinning financial inclusion; (iii) safe, efficient and widely reachable financial and ICT infrastructures; (iv) transaction accounts and payment product offerings that ...
What is the meaning of global financial management? ›
International finance management is the strategic management of financial activities across national borders. It entails overseeing global financial operations such as investing, financing, and risk management.
What are global financial strategies? ›
Global Finance Strategies (GFS) is a global consulting firm that provides financial, strategic and operational counsel, capacity building and outsourcing services for NGOs, donors, governments and private sector companies.
Global finance offers numerous benefits, including facilitating international trade and investments, fostering economic growth, and providing opportunities for diversification. It enables efficient allocation of resources on a global scale, promoting stability and prosperity.
Why is financial globalization important? ›
Economic Growth: Financial Globalization is often thought to stimulate economic growth. It aids in the efficient allocation of capital, propelling productivity and economic innovation. International capital flows, for instance, channel funds from capital-rich economies to capital-poor, high-growth economies.
What is the role of global financial institutions? ›
They play a major role in the social and economic development of countries with emerging economies. This includes advising, funding, and assisting on development projects to: reduce global poverty and improve living conditions and standards.
What is financial development planning? ›
What Is Financial Plan Development? Financial plan development is the process of creating a comprehensive financial roadmap that outlines your short and long-term financial goals, and the strategies and tactics required to achieve them.
What is the difference between economic and financial development? ›
As a general social science, the focus of economics is more on the big picture, or general questions about human behavior around the allocation of real resources. The focus of finance is more on the techniques and tools of managing money.
What are the financial development factors? ›
There is a large number of factors that affect financial development: openness, political stability, financial liberalization, national regulatory factor, etc. (Čižo et al. 2020).
What are the components of financial development? ›
Financial development has many dimensions, such as financial depth, financial efficiency, financial structure, financial stability, and financial inclusion (Cihak et al.
What is personal financial development? ›
Smart personal finance involves developing strategies that include budgeting, creating an emergency fund, paying off debt, using credit cards wisely, saving for retirement, and much more. Being disciplined is important, but it's also good to know when you shouldn't adhere to the guidelines.
What is financing for development? ›
It involves funds generated within countries, such as through taxation, as well as finance provided by one country to support another in reaching its development goals, such as through grants and low-cost loans.
