Η οικονομική σύγκλιση και η ανάπτυξη των αγορών χρήματος και κεφαλαίου
Economic convergence and the financial development
SubjectΚεφαλαιαγορά ; Αγορά χρήματος ; Οικονομική ανάπτυξη ; Convergence (Economics) ; Χρηματοοικονομική
The aim of the present work is to detect possible commonalities between the converging behavior of the economic development and the converging behavior of financial development. As we have already mentioned, there are two different approaches of the mechanisms that lead to economic growth. The first approach is the neoclassical growth framework, according to which the per capita income must converge instantly, across the countries. However the per capita income across countries, rather diverge than converge, as the neoclassical growth theory predicts. The notion of conditional convergence developed in order to correct the predictions of the neoclassical growth theory. According to this notion, the per capita income growth rate converges across countries, only if a number of factors are kept constant. From the other hand, the absolute value of the per capita income converges in different steady state levels for every country and as a result the absolute convergence occurs only when the steady states of the countries also converge. Consequently, in order to identify the reasons of the divergence in the per capita income, we should detect the determinant factors of the steady state of each country. A possible determinant factor of the steady state is the financial development which may enter into the Cobb-Douglas production function at the term A(0). The second approach of the mechanisms that lead to economic growth is the endogenous growth framework. According to this, the income inequality across countries could persist if a number of factors remain different, across the countries. A large number of endogenous growth models which employed directly the financial development in various forms, were developed. According to them, a possible impediment of the convergence in the per capita income is the different degrees of the financial development across the countries.