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Critically discuss whether you agree or disagree with the researcher’s assertion that financial development is the main pre-requisite to development in poorer countries

Task: researcher extracts data from a database and observes that developing countries score low on economic development indicators as well as on financial development indicators. He uses this observation to assert that financial development is the main pre-requisite to economic development in poorer countries. He also hypothesises that this is especially so if the economy has a large informal sector. Your task is to critically analyse and discuss the researcher’s argument using your own data analysis as well as related theoretical and empirical literature. The task has been divided into two parts, A and B, as outlined below. Note: The assignment has to be submitted as a single document in one file, with parts A and B answered separately.

 

 

(Part A: Data Report (1000 words including tables and/or graphs, excluding references. There is no 10% margin to exceed the word limit) Extract relevant data from the World Bank website, present your tables and/or graphs in a clear and coherent way and argue whether the researcher’s observation regarding economic development and financial development indicators is correct. Critically discuss (and justify) your choice of countries and indicators and use the literature to support your discussion.)

 

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