Many studies showed that interventionist policies play negative role on the economical growth process. Others, based on realistic statistics related to some countries, showed that some of this politics can play positive role on the economical growth
of these countries. In this course, this study aimed to stand on the role that the interventional polices may play on the economical growth using real mathematical model that is The Overlapping Generations Model where a study of probable effect of these policies on individual saving level took place. Results show that interventionist policies affect negatively on investment level accordingly capital stock accumulation on the long term. But in the countries with high saving level, the effect of such policies is positive through its effect on the efficiency of resources allocation of investment.
This article aims to revision of literature concerned with the study of
relationship between financial system development and the
economic growth. To confirm the nature of this relationship and its
direction and also defining how the financial sys
tem may affect
economy, because many theoretical and applied studies treated this
questions due to its huge importance and the importance of decision
based on its results. So to what extent these studies could answer.
