Economic development versus the growing importance of the financial sector: Global insight

Marek Maciejewski () and Agnieszka Głodowska ()
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Marek Maciejewski: Cracow University of Economics, Kraków, Poland
Agnieszka Głodowska: Cracow University of Economics, Kraków, Poland

International Entrepreneurship Review, 2020, vol. 6, issue 3, 79-92

Abstract: Objective: The objective of the article is to show the relationship between the growing role of the financial sector and economic development in the context of the 4 Industrial Revolution (4IR). Research Design & Methods: The article uses linear ordering based on the standardized sums method. It allowed for the construction of a synthetic indicator of the financialisation of the economy. The values of this indicator were compared with the GDP growth rate of selected countries. Findings: Studies have shown that, for the countries with the highest economic development level, there is no reason to say that too high level of development in the financial sector slows down their economic growth. Instead, it turned out that the development of the financial sector, which is detrimental to economic growth, occurs in countries in transition and those with an average economic development level. There the level of financialisation of the economy is lower. Contribution & Value Added: The study was carried out on a large group of countries with different economic development levels, making it possible not only to draw general conclusions but also to address individual countries’ specificities.

JEL-codes: G15 O10 O30 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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