Answer to Question #269410 in Economics for Muhammad Ali

Question #269410

What is the role of the financial intermediation in economic development?


1
Expert's answer
2021-11-22T10:08:54-0500

The role of financial intermediation in economic growth has been widely recognized in theoretical and empirical research. Finance can stimulate the main drivers of growth such as capital and total factor productivity. Financial intermediaries decrease transaction costs of capital accumulation and encourage savings.


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