Transportation, Distribution, and Logistics Statutory Authority: This course is recommended for students in Grades
It promotes economic growth through capital accumulation and technological advancement by boosting savings rate, delivering information about investment, optimizing the allocation of capital, mobilizing and pooling savings, and facilitating and encouraging foreign capital inflows.
SMEs are typically labor-intensive and create more jobs than large firms, which contributes significantly to economic development in emerging economies. Additionally, financial sector development also entails establishing robust financial policies and regulatory framework.
The absence of adequate financial sector policies could have disastrous outcome, as illustrated by the global financial crisis.
The Global Financial Development Report, a new initiative by the World Bank, highlights issues that have come to the forefront after the crisis and presents policy recommendation to strengthen systems and avoid similar crisis in the future.
By gathering data and knowledge on financial development around the world, the GFDR report aims to put into spotlight issues of financial development and hopes to present analysis and expert views on current policy issues.
Theories of Financial Sector Development[ edit ] AcemogluJohnson and Robinson emphasize the importance of the distribution of political power in shaping the differing paths of financial sector development in the United States and Mexico in the 19th and early 20th century.
The federal nature of the US political system meant that states ended up competing with each other to attract inward investment. This in turn, made the restriction of competition in the banking sector untenable.
Suffrage was highly restricted and there were no competing federal states which meant that political power was not widely spread.
As a result, "the central government granted monopoly rights to banks"  which enabled them to "raise revenue and redistribute rents to political supporters. Rajan and Zingales focus on the power of interest groups to explain cross-sectional and time-series variation in financial sector development.
Cross border capital flows limit the government's ability to direct credit and give out subsidies to these firms is restricted.
The arrival of new foreign firms will cause banks to push for improved disclosure standards and contract enforcement because they would not have personal connections with foreign firms.
Incumbent firms will be unable to rely on connections in the banking sector to provide them with loans and will therefore push for more competition and lower barriers to entry in the financial sector so their access to finance improves.
In this model, increased trade and capital flows are an exogenous shock that can change the incentives of the economic elite. They now have an incentive to level the playing field and ensure that everyone plays by the same set of rules.
Measurement of Financial Development[ edit ] A good measurement of financial development is crucial in evaluating the progress of financial sector development and understanding the corresponding impact on economic growth and poverty reduction.
However, in practice, it is difficult to measure financial development given the complexity and dimensions it encompasses. Empirical work done so far is usually based on standard quantitative indicators available for a longer time period for a broad range of countries.
This framework identifies four sets of proxy variables characterizing a well-functioning financial system:When we refer to hazards in relation to occupational safety and health the most commonly used definition is ‘A Hazard is a potential source of harm or adverse health effect on a person or persons’.
Take a guided tour of Fidelity's sector and industry research. Understanding Sectors The Business Cycle Approach to Sector Investing (PDF) provides details on how you can potentially take advantage of opportunities that arise due to the relative performance of sectors in each phase.
The establishment payroll survey, known as the Current Employment Statistics (CES) survey, is based on a survey of approximately , businesses and government agencies representing approximately , worksites throughout the United States.
Food is an essential part of our lives, which is why the way it is grown, processed and transported is worth understanding and improving.
Broadly, the food industry comprises a complex network of activities pertaining to the supply, consumption, and catering of food products and services across the world.
Finished food products and partially prepared ‘instant’ food packets are also a part. WHAT INFORMATION DO I RECEIVE FROM A SUBSCRIPTION?
Select an industrial sector and region; A subscription entitles you to receive an index or forecast on the last day of each month for a period of one year. Explain how each sector of industry is linked together within a supply chain? In today's world, supply chain management (SCM) is a key strategic factor for increasing organizational effectiveness and for better realization of organizational goals such as enhanced competitiveness, better customer care and increased profitability.