Financial System And Economic Development - 1001 Words

In a developing country, such as Egypt, misuse and/or lack of foreign exchange is a main constraint to investment and economic growth, as foreign exchange is necessary to obtain foreign intermediate and capital goods. In addition, lack of foreign exchange results in devaluation of the Egyptian pound, which considered the main cause of inflation in the Egyptian economy. 4. Financial System and Economic Development Goals This section examines the efficiency by which the Egyptian financial system allocates and directs savings to achieve economic development goals. 4.1Efficiency of Utilizing Savings As mentioned before, carrying-out investments is the cornerstone of any economic development process. While savings are the main resources in the process of carrying-out investments, then it is useful to measure the efficiency of utilizing savings (the ability of savings to carry-out investments). In this context, savings are considered inputs while investment spending is considered the output in the process of carrying-out investments. A Data Envelopment Analysis (DEA) methodology will be used to estimate the investment spending (output) frontier for the purpose of calculating the efficiency of utilizing savings (input) (Coelli T. J, 1996). Appendix (3) illustrates the results of output-orientated DEA for the production of single output (investment spending) using a single input (savings). The analysis shows three concepts of efficiency: Over all technical efficiency, pureShow MoreRelatedThe Economic Development Of The Financial System Essay2086 Words   |  9 PagesINTRODUCTION The economic development of most of the countries depends upon the efficiency of a well organized financial system. It is the financial system which is supply the necessary inputs for the production of goods and services in turn promotes increases the well being and standard of living of the people of a country. Thus, the financial system is a broader in term under its fold the major assets traded in they in the financial system are money and monetary assets. The major responsibilityRead MoreEconomic Development : The Republic Of Financial System1542 Words   |  7 Pagesin Central and Eastern Europe (CEE) have experienced a comprehensive financial transformation to help them reintegrate into the global economic market. The transformation with the purpose of improving economic development involved labor market, enterprises restructure, governance, policy, privatization and the most important one: financial system. Financial system plays an essential role in every country’s economic development. It helps reasonably allocate resources, provides risk-sharing opportunitiesRead MoreA Sound Financial Reporting System, Supported by High Quality Accounting Standards and Backed by a Solid Regulatory, Governance and Ethical Framework, Is a Pre-Requisite for Economic Development.2064 Words   |  9 Pagesâ€Å"A sound financial reporting system, supported by high quality accounting standards and backed by a solid regulatory, governance and ethical framework, is a pre-requisite for economic development†. Accounting has been around since the beginning of civilization and played an important role in the development of cities, trade and the concepts of wealth. Nowadays, business is very complex and therefore there is an increased need for providing accurate and reliable financial information. MoreoverRead MoreEssay on MBA detail course outline1314 Words   |  6 PagesTheory †¢ Organization Theory †¢ Financial Accounting †¢ Financial Accounting †¢ Project Management Fundamentals 2nd Quarter †¢ Project Management Fundamentals †¢ Project Management Fundamentals †¢ Project Management Fundamentals 4th Quarter †¢ Organizational Behavior – I †¢ Organizational Behavior – I †¢ Organizational Behavior – I †¢ Organizational Behavior – I †¢ Leadership †¢ Leadership †¢ Financial Management †¢ Financial Management †¢ Organizational Behavior-II Read More Asian Essay946 Words   |  4 Pages Asian Financial Institutions and Markets The Asian financial markets can be compared to the economic philosophy of mercantilism, which is regulated commerce to produce a favorable balance of trade. Governments regulate production techniques to ensure the quality of exports, and in general, subsidize production in their exporting industries. Tariffs can be high on imported manufactured goods and low on imported raw materials. The state exercises much control over economic life in these environmentsRead MoreRole Of Infrastructure And Rural Development1243 Words   |  5 Pagesand Rural Development in Explaining the Banking-Growth Nexus in India: Evidence from State Level Data.The relation between financial development and economic growth has been under debate for a long time, despite there being evidences of financial and banking sector devolvement playing an important role in economic development the evidences from within the developing economies is rather mixed. Literature Review Economists hold different opinions regarding the role of finance in economic growth andRead MoreAccounting Systems At The International Level1387 Words   |  6 Pagesone of the oldest social sciences disciplines whose development has been affected by a variety of historical, economic, social-cultural and institutional factors. In essence, although the discipline is currently harmonized across different nations, accounting systems have been influenced by different national traits, a factor that also influenced the differences in accounting systems at the international level. In general, the accounting systems in use in different countries have developed as a resultRead MoreAccounting and the Development of Society1495 Words   |  6 Pagesï » ¿Accounting and the Development of Society: Accounting can be described as a field that focuses on collecting, evaluating, and communicating financial or economic information. The contribution of accounting in the development of the society can be understood through evaluating the concept from a social rather than economic perspective. In this case, the society emanates from the established relationships by individuals in order to coexist with each other. Generally, a society is classified intoRead MoreEconomic Growth and Development1547 Words   |  6 Pagesï » ¿ECONOMIC DEVELOPMENT AND GROWTH Economic development and growth may not be the same thing depending on how growth rate is affecting the countrys socio-economic development. However important and well known theories of macro-economic suggest that if markets are left on their own, people will improve their socio-economic wellbeing automatically as the result of better economic growth rate of the country. In other words, financial liberalization automatically leads to socio-economic uplift as suggestedRead MoreRole of Commercial Bank in Economic Development in India1737 Words   |  7 Pages Every country needs the services of financial institutions for accelerating the pace of development. Commercial banks have played a critical role in the economic development of a country. Now a day’s commercial banks are important not just from the point of view of economic growth, but also financial stability. In emerging economies, commercial banks are special for three important reasons. First, they take a leading ro le in developing other financial intermediaries and markets. Second, due to