Then, the authors proceed to analyze the relative growth performance within the Arab region. Christopher Pissarides Human capital occupies a central role in modern thinking about growth. The labor market is the place where human capital is created and deployed. This paper argues that the study of the links between labor markets and growth should concentrate on a study of labor market influences on the quantity, quality and productivity of human capital. This paper explores the role of various markets in promoting or detracting from economic growth.
Close attention is paid to the financial markets in particular.
In an expanding economy, resources used for investment in productive capacity can determine the future structure of the economy. The predominant role of the banks in nearly all East Asian financial markets allows them, or those who control them, to exert a major influence on economic growth. Asian countries differ considerably in the way banks are controlled and directed, and this goes a long way toward explaining the different structures and performance of their economies. In particular, in a few countries, notably Korea, banks have been used to pursue a highly dirigiste economy, and to promote the acquisition of new technology. The attractiveness of the market lies in the discipline it imposes on entrepreneurs.