The Role of Finance in Promoting Sustainable Economic Growth

This paper highlights the significance of financial systems for long-term economic growth, based on a review of structural and natural experiments and econometric evidence. Over time, from the deregulation of banking in the USA to microfinance in South Asia to mobile banking in both sub-Saharan Africa and South Asia, finance has consistently proven to be the cornerstone for financing, innovation, and resource allocation. These policy recommendations emphasize providing increased access to capital through the promotion of inclusive and transparent financial systems, thereby fostering a higher degree of entrepreneurship and gradual advancement of global economic integration.