Financial Systems and Economic Growth: An Evaluation Framework for Policy

Arbeitspapier

The purpose of this paper is to develop an analytical framework for discussing the link between financial systems and economic growth. Financial systems help overcome an information asymmetry between borrowers and lenders. If they do not function well, economic growth will be negatively affected. Three policy implications follow. First, the analysis underscores the importance of maintaining solid legal foundations because the financial system relies on these. Second, it demonstrates the necessity for reforming tax policy as it applies to investment, as this is demonstrated to significantly affect the operation of the financial system. Finally, given the importance of financial development for economic growth, a more in-depth review of New Zealand's financial system in the context of financial regulation and supervision would be valuable.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: New Zealand Treasury Working Paper ; No. 04/17

Classification and Topics

• Classification: Wirtschaft ; General Financial Markets: General (includes Measurement and Data) ; Financial Institutions and Services: General ; Corporate Finance and Governance: Government Policy and Regulation ; Business Taxes and Subsidies including sales and value-added (VAT) ; Regulation and Business Law: General ; Tax Law ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: Economic growth ; financial development ; financial systems ; financial regulation ; legal system ; institutions ; tax

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Claus, Iris ; Jacobsen, Veronica ; Jera, Brock
• Event: Veröffentlichung
• (who): New Zealand Government, The Treasury
• (where): Wellington
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/205557
• Last update: 10.03.2025, 11:43 AM CET