Economic Growth and Financial Development

There are three views about the relation between economic growth and financial development. First, financial development has impact on economic growth (i. e. Bagehot, 1873; Schumpeter, 1912; McKinnon, 1973; Shaw, 1973; Patrick, 1966; Goldsmith, 1969; Fry, 1973). Second, economic growth leads to financial development and that where there is economic growth financial development follows (i. e. Robinson, 1952). The third view, however, contends that both financial development and economic growth Granger cause one another.In the essay, our group focus on the first view which financial development will has passive influence on economic growth. During the year from 1955 to 1993, many scholars has study the relationship between financial development and economic growth. Along with the time goes, the theory that financial development will real promote economic growth has been more and more prefect. In the years between 1950s and 1960s, economists such as Gurley and Shaw began to stress the c redit markets and the importance of financial intermediaries, which they believed play an important role in economy. 5] They argued that tradition monetary transmission mechanism ignores the factor of financial structure and financial flow and only pays attention to the total amount of money and the connection of the output. In 1955, Gurley and Shaw bring up the development of financial institution is both a determined and determining variable in the growth process. (Gurley and Shaw, 1995, p. 532). Gurley and Shaw stressed that financial intermediaries exert influence on credit supply rather than money supply.In this way, financial intermediaries improve the efficiency of savings turning into investments and then affect the whole economic activities. They are the earliest scholars to study in-depth the relationship between financial and economic development in developing countries. Gurley and Shaw pointed out that the main access road of monetary policy transmission probably have di verted from money quantity, which is traditionally thought as the medium of exchange.Whereas, the â€Å"financial capability† of economy would has a closer relationship with the gross expenditure. They put forward financial development enhances the intermediation of loanable funds and therefore growth will be stimulated and they have a debt-intermediation view. The Debt-intermediation view establishes relations between finance and growth. First, economic growth would be associated with financial development, as external indirect finance provides surplus units with the capacity to spend beyond their earnings.Second, growth would stimulate and be stimulated by the â€Å"institutionalisation of saving and investment†; income grows, richer wealth-holders will increase their desire to diversify their asset portfolio. If financial innovation is such to accommodate this â€Å"diversification demand†, financial institutions can enhance their lending capacity and thus bo ost growth; the process becomes a cycle. Gurley and Shaw has earlier pointed that the growing importance of NBFI (non-bank financial intermediaries) when they discussed their activities about potentially serious problems for monetary management and monetary policy. 1] Subsequent analysis of the problems had to two results. [2] First, if the monetary authorities exerted control over the financial system through the operating of the financial markets, monetary management would not be undermined. [3] Second, which placed specific restrictions on banks, at that time the dominant financial entities, the growing role of NBFI was stimulated in part by the opportunities for intermediation created by monetary policy measures.These contributions stressed the relevance for financial â€Å"deepening† (mean financial development) of rising wealth and income, then attempts to control the activities of financial intermediaries. Wealth and income incent the demand for financial services. Res trictions and Controls on financial intermediaries create the stimulation for further financial intermediation by generatingâ€Å"quasi-rents† that risk among participants in financial and capital markets and reflect differences in information. 4] However, Gurley and Shaw do not address the issue of causality between financial development and economic growth. In 1966, Patrick make the causality issue is addressed, he posed theâ€Å"stage of development† hypothesis, where the direction of causality between financial development and economic growth changes over the course of development. [6] Two hypotheses are developed, one is Demand-following hypothesis: a causal relationship from real to finance and the other is Supply-leading hypothesis: a causal relationship from finance to growth.The supply-leading hypothesis supposes a causal relationship from financial development to economic growth, which means mature creation of financial institutions and markets increases the supply of financial services, and thus leads to real economic growth. Patrick suggests that initial development is spurred by supply-leading process, which gives way to demand-following process. He posed financial institutions and services emerge as demand for those services unfolds. The idea is that finance is passive in the growth process, but lack of financial institutions may prevent growth to occur.Financial institutions and their services precede the emergence of demand; government support is needed to finance and nascent modern sector, such as subsidized loans, information to small business and long loan durations. He points out the importance of finance in economic growth. The difficulty of establishing the link between financial development and economic growth was first identified by Patrick (1966), he argued that a higher rate of financial growth is positively correlated with successful real growth. [7] In his theory, commercial banks may issue banknotes and accept â€Å" easy† collaterals. Easy loan† can induce economic growth, for it can finance innovation-type investment, however, in fact it can also induce irresponsible borrowing. Since the important work of Patrick, that first postulated a bi-directional relationship between financial development and economic growth. A large empirical literature has emerged testing this hypothesis as the Patrick's (1966) problem remains unresolved: What is the cause and what is the effect? Is finance a leading sector in economic development, or does it simply follow growth in real output which is generated elsewhere. References: [1] de Oliviera Campos, R. 1964) â€Å"Economic Development and Inflation with Special Reference to Latin America† in Development Plans and Programmes Paris: Organisation for Cooperation and Development [2] Duesenberry, J. S. and M. F. McPherson (1991) â€Å"Monetary Management in Sub-Saharan Africa† HIID Development Discussion Papers no. 369, January [3] Friedm an, M. (1973) Money and Economic Development The Horowitz Lectures of 1972 New York: Praeger Publishers [4] Malcolm F. McPherson and Tzvetana Rakovski (1999) â€Å"Financial Deepening and Investment in Africa: Evidence from Botswana and Mauritius†, Copyright 1999 Malcolm F.McPherson, Tzvetana Rakovski, and President and Fellows of Harvard College [5] Liu Pan Xie Tao (2006) The Monetary Policy Transmission in China-â€Å"Credit Channel† And Its Limitations, Working Papers of the Business Institute Berlin at the Berlin School of Economics (FHW-Berlin) [6] Anthony P. Wood and Roland C. Craigwell Financial Development and Economic Growth: Testing Patrick’s Hypothesis for Three Caribbean Economies [7] Philip Arestis (2005) FINANCIAL LIBERALISATION AND THE RELATIONSHIP BETWEEN FINANCE AND GROWTH, University of Cambridge

A Comparison of Jurassic Park essays

A Comparison of Jurassic Park essays When one reflects on the past two decades of film, many magnificent movies have been put into production. Theyre has been ground-breaking developments in all of the different genre, not to mention in animation and other aspects of film. If we were to list the greatest films of this era, we would find that many of these films are made by one man, Steven Spielburg. Steven Spielburg has directed some of the most spectacular movies of our time. And after watching enough of his works, we begin to realize that Spielburg has a style that can be seen throughout most of his movies. This style of his can be seen in both the movies Jurassic Park series and movies from the Indiana Jones series. Jurassic Park was produced in 1993 and directed by Steven Spielburg. It takes place on a remote island, where a wealthy entrepreneur secretly creates a theme park featuring living dinosaurs that have been created from prehistoric DNA. Before opening the park to the public, the owner(Richard Attenborough) invites a Paleontologists(Sam Neil), a Paleobotanist(Laura Dern), and a Mathematician/theorist(Jeff Goldblum), in order to ease the anxiety of his investors. However, theyre visit is anything but tranquil as the parks security systems break down, and the prehistoric marvels break from theyre containment and retake the food chain. But Jurassic Park hand more than just an interesting story, it was a technological breakthrough, taking a giant leap in the arena of computer graphics and spawning a new wave of film making. It was stunning, awesome, and terrifying all at the same time. Jurassic Park is, if nothing else, one of the most effective plays on an innate human fear ever put to film. It makes us realize how drastically different our lives might be if we werent the top dog on the food chain. Another marvelous film by Steven Spielburg was Raiders of the Lost Ark. This was the ...

Pro and Con Essay

Pro and Con Essay If you are assigned to write a paper on any topic – and you do not wish to get into detail of the topic – a good way to avoid this is to analyze the pros and cons of the topic. This way you will be able to show your professor that you are knowledgeable of the topic you are writing about, and you will write minimum text, as all you are doing is defining string and weak sides of the paper. You have to have a controversial topic to write a pro and con essay. Only with a controversial topic – you can easily define pros and cons. There are various topics you can apply a pro and con paper, so try surfing the internet for a suitable controversial topic. As soon as you have chosen a topic – you can go ahead and start brainstorming on the possible pros and cons of your pro and con paper. Your pros and cons can be divided in different stages. The first stage is the implementation of various sides of the paper. You can discuss the hardships and easy ways of implementation. This is a very important factor, as the most effective solution can be either hard to implement, or time consuming or money consuming. The second stage is the effectiveness of the solutions. Here you have to measure the effectiveness of the solution, and try to compare it with the implementation stage. The third part is the consequence stage. Here you need to forecast possible problems after the solution has been implemented. There are several factors that you can discuss here. Basically – your number one objective is to think everything through. If you forget something – your professor might have some objections, and your paper will not be successful. If you are in a desperate need of a custom paper – feel free to order a pro and con paper from our online custom essay writing company.

Archeological dig in Israel

Archeological dig in Israel In 2015 there was an archeological dig in Israel where researchers found different types of nuts.  ¨The nuts types were water chestnut, wild almond, prickly water lily, and 2 varieties of both acorns and pistachios. ¨(Nutcracker Museum) Also there were 50 pitted stones were found at the Israel site. Each stone had a dent. Dents in the stones appeared to have been formed when the stones were used to open or crack quantities of hard nuts. (Nutcracker Museum) They were called, nutting stones. Nuts formed a major part of mans diet 780,000 years ago. Archaeologists have found cracking equipment related to the isrealiites from some Native Americans. Native Americans would do the same process as the (Nutcracker Museum) pThe most common nuts used by the Native Americans were beechnuts, chestnuts, hickory nuts, and walnuts. After removing the inside of the nuts, the shells were used to make their fires. (Nutcracker Museum) 50,000 B.C. the oldest walnuts were found by the Greeks and the Romans. They were considered the food of the Gods. Walnuts were a traded item by English ships throughout the Mediterranean and that is why it is called the English Walnut. (Nutcracker Museum) In the 18th century, Walnuts were brought to California from Spain. Today California produces much of the worlds supply. Also, they used them as oil and for thickening cornstarch. The earliest remains of pecans were found in Texas. (Nutcracker Museum) They dated back to 6100 bc. The pecan was mainly in the diet of the natives and the early settlers. The macadamia originated in the rainforests of Queensland, Australia. (Nutcracker Museum) It was brought over to Hawaii in the 19th century where most of the worlds supply is grown today. Almonds are thought to be among the earliest harvested foods. (Nutcracker Museum) They have been found in both Cyprus and Greece and were mentioned in the Old Testament of the Bible. The hazelnut is known by many names such as the filbert, Cobnut, or Spanish Nut. The hazelnut is among the five sacred nourishments God gave to human beings based off of a manuscript found in China from the year 2838 B.C .(Nutcracker Museum) The cashew nut originates in Brazil. It was brought to India and Africa in the 16th century. (Nutcracker Museum) It was brought to the Philippines by the Spanish traders. The Brazil nut originated in South America and is mostly found in the Amazon basin. (Nutcracker Museum) It grows in section like an orange with 10-15 nuts at the same spot (Nutcracker Museum)The peanut is a member of the pea family, not a nut. They originated from South America where the Indians have used produced and consumed them for over 2000 years.(Nutcracker Museum) By the 20th century, there w as a huge demand for peanut oil, roasted and salted peanuts, as well as the new peanut butter. (Nutcracker Museum)

Government 2 Dissertation Example | Topics and Well Written Essays - 500 words - 2

Government 2 - Dissertation Example It is possible for a minority idea to prevent a majority idea from being enacted. In this case, the minority party must be able to show a great opposition to the majority party, which does not usually occur. The basic ideas of representation have not changed, however the way in which the people of the branches conduct themselves has because there is far more lobbying and dealing with interest parties than there were in 1789. In addition, it seems that the leaders of both the house and the senate seem to have more power and influence than in previous years. 2. Discuss the process of how a Bill becomes a law in Texas. In order for a bill to become a law according to the Texas Constitution, it must pass through a vote in both the House and the Senate, much like in the federal government. Once a bill is written up, it is first taken to the House to be voted on. Depending on what the bill is related to, it is assigned to a committee in the House where a hearing is held. The committee then votes and the bill needs a majority vote to pass. Then, it is brought to the floor of the House for debate, amendments and voting. The senate follows the same process, which means sometimes there are two different copies of the bill. In this case, representatives from both chambers meet to discuss and compromise. That compromised bill is returned to both houses for voting without any amendments.

Using modelling, critical evacuate the effectiveness of leadership and Essay

Using modelling, critical evacuate the effectiveness of leadership and management using a chosen successful elite Soccer manager - Essay Example The paper highlights the traits of an effective manager and links them with the performance of Jose Mourinho, followed with a conclusion. Leadership is a process where an individual influences a group of other individuals to achieve a common goal (Northouse & Northouse, 2009). Leadership is of immense value in managerial jobs. In reference to football, leadership plays a pivotal role not only in coaching of the team but also in recruiting of the most appropriate team members, providing them with moral support and in assigning them responsibilities according to each one’s competency. Since stakeholders have invested millions of dollars at times into the football club, it is expected that the team would perform well. Therefore an experienced and talented manager is chosen so that he is able to bring out the best in the team members and appoint a competent coach who channelize the talents of the members and make the team win. Therefore managers are usually held responsible for the performance of the team; if the performance of the team is not up to the standard, managers can get fired. This accentuates the risky n ature of the job and the amount of responsibility that the manager has. A team is nothing without a good coach; the coach not only maps out the positions each player is going to play after scrutinizing the individual capabilities of the players, but also makes an analysis of the competition that the team is going to face in the playing arena and justly devises strategies to aid the team in specializing in particular game moves that will make them play better in comparison with their competitors. The role of a football manager extends beyond the fiscal matters of the team. A successful manager is one who is rated high on his relationship with the team. The manager motivates the team and builds up their morale. The attitude of the manager with

Interactive Group Discussion Essay Example | Topics and Well Written Essays - 1000 words - 1

Interactive Group Discussion - Essay Example In line with this, each member was expected to study the PRINCE 2 structure closely. The work was to be chosen by each individual in the group this paved way for the development of, R&D.Members were expected to carry out documentation.The incorporation of individual aspect was to come out at this stage. The individual perspective was to be read out at the next meeting. In the following meetings project approach was identified. Technological Road Map (TRM) was identified. This however presented a new challenge to us. To begin with, two project members had to be explained to what TRM entail as they found it very complex.The identification of objectives brought forward an issue especially on the last. The objective mentioned that The TRM method and other optional methods. This was an issue as the objective was overloaded and vague. Members deliberated and we modified it to only one method. The decision on communication on completion of the work was decided. The group zeroed on email as the best method. Communication was an important aspect of any group interaction. The members were to keep in touch through the use of emails and also physical meetings. To begin with, the method was good as it was fast and time-saving. Considers that internet-based surveys may save time for researchers as access can be gained to a large number of individuals within a short time. In so doing it meant that communication could take place any time of the day as all one needed was a computer and internet connection.... to be chosen by each individual in the group this paved way for the development of ,R&D.Members were expected to carry out documentation .The incorporation of individual aspect was to come out at this stage. The individual perspective was to be read out at the next meeting. In the following meetings project approach was identified. Technological Road Map (TRM) was identified. This however presented a new challenge to us. To begin with two project members had to be explained to what TRM entail as they found it very complex .The identification of objectives brought forward an issue especially on the last. The objective mentioned that The TRM method and other optional methods. This was an issue as the objective was overloaded and vague. Members deliberated and we modified it to only one method. Decision on communication on completion of the work was decided. The group zeroed on email as the best method. Communication was an important aspect in any group interaction. The members were to keep in touch through the use of emails and also physical meetings. The prior, use of emails had pros and cons. To begin with the method was good as it was fast and time saving. Consinders that internet based surveys may save time for researchers as access can be gained to large number of individuals within a short time. ( Wright, 2005 p 8) . In so doing it meant that communication could take place any time of the day as all one needed was a computer and internet connection. Another advantage was that the communication could take place simultaneously between several individuals. (Mann, 2002 p 2) notices , ‘The internet enables to an interchange of messages between two or more users logged at different computer terminals’. However, the methods had certain disadvantages. One could not