Summary |
Metrics of financial market development quantify the ease with which individuals in need of external finance can access the required capital and the premium they pay for these funds. The role entrepreneurship plays in linking a country’s financial market development to its subsequent economic growth is highlighted by King and Levine and Levine. Their work brought prominence to the role of finance in Schumpeter’s creative destruction, whereby entrepreneurs with new ideas and technologies displace incumbents with old technologies, leading to a continued increase in productivity and economic growth.
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