The impact of venture capital on the economy of the emerging markets

• Autor(a) principal: Iacomino, Luca
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/163648
• topic: Start-up; Venture capital; Emerging markets; Economic growth; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

There is a large literature review that study the impact of financial activities on the economic growth of countries. Already in the 1911 A. Schumpter emphasized the positive effect of the development of a country' s financial sector on the level and on the growth of its per capita income. The core of the argument is that the financial sector's services—reallocating capital to the greatest value of use while minimizing losses due to moral hazard, adverse selection, or transaction costs—are a crucial engine for economic growth. This claim seems to be supported by empirical research. For instance, Raymond W. Goldsmith (1969, p. 48) draws the conclusion that "a rough parallelism can be established between economic and financial development if periods of several decades are evaluated" based on data from 35 nations between 1860 and 1963