Financial Development and Economic Growth

The United States of America has made significant developments with respect to their financial market which in turn has resulted in the form of high economic growth. When we compare the U.S., which has one of the most developed financial markets, to other less developed countries, we find that the United States accumulates capital and grow at a higher rate due to markets being more stable. On the other hand, other lesser developed countries have not made much considerable development with respect to financial development which in turn has affected their economic growth. In this paper we will examine the financial development of a less developed country and will measure its effects on its economic growth. For this purpose we will include statistical data to make our point more valid. We will also use measure of financial development such as the exchange rate volatilities, stock...
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