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This chapter examines the impact of ambitious entrepreneurship (entrepreneurs expecting to grow their firm) and established high-growth firms (firms that have actually realized high growth rates) on macroeconomic growth using a large sample of GEM data in high and low-income countries for the period 2002-2005. The empirical evidence shows that ambitious entrepreneurship accounts for the whole effect of entrepreneurship on macroeconomic growth but that this is not the case when low-income countries are considered. Also, in contrast to ambitious entrepreneurs, the chapter finds the contribution of established high-growth firms to macroeconomic growth to be negligible. No connection between their prevalence rates and the share of ambitious entrepreneurs is found.

This chapter describes the process of financial development and access, and the various dimensions of each of the two concepts, and how it leads to economic growth and development. It elaborates on the macroeconomic growth approach and underlying rationale for adopting this approach. Keeping the productive investment requirements of growth in mind, financial development is specified along the dimensions of diversification, size, reach, efficiency and soundness. Financial access is specified as the use of formal financial resources in relation to actual productive investment undertaken by the economic agents/sectors/segments. Further, the use of formal financial system is examined in terms of availability and adequacy of formal financial resources. Adequacy is measured as gap between the need and availability, which the study terms as financial resource gap.

This chapter presents concluding remarks on the impact of MNEs on host country development and discusses how although MNEs unambiguously contribute to the economic development of nations, the distribution of those benefits may vary. MNEs bring foreign direct investment, transfer technology, increase national income, provide more skilled jobs, pay taxes, and otherwise contribute to the overall macroeconomic growth of host economies. It is also determined that MNEs from emerging economies build on the improved macroeconomic infrastructure created by foreign MNEs. The chapter reveals that MNEs from the advanced triad economies of Europe, North America, and the Asia-Pacific region serve to foster the development and growth of poor economies. It is also argued that as a result of this improved macroeconomic infrastructure, the emerging economies generate their own MNEs, thus further enhancing their growth and prosperity.

This chapter examines the ways in which public economists leveraged the postwar ideal of full employment to argue that a macroeconomic focus on rapid domestic growth could finally overcome structural inequality and what they believed to be Japan’s age-old population problem. The perceived dilemma of “surplus population” had long vexed national leaders and ideologues during the modern period. In postwar Japan, public economists sought to address this “population problem” using assumptions and concepts taken from the new economics by calling for a more expansive goal of rapid “economic growth.” This chapter first considers the idea that a national mobilization for macroeconomic growth could serve as an internal postwar solution to the perennial national problems of population, unemployment, and “backwardness.” It then discusses the suggestion that new kinds of private consumption might also have their place in the Japanese economy of growth, based on a vision of progress in which consumers would play a new role in ensuring national economic welfare.

The last major financial crisis produced important changes in the regulatory and supervisory architecture seeking to enhance financial stability and consumer welfare. New structures have been instituted at the federal, state and provincial, regional, and global levels. Though these seek to advance overall reform objectives, the new rules are creating unintended consequences affecting dimensions of social welfare that lie outside traditional supervisory mandates. Such new policies will surely influence macroeconomic growth; availability, quality, and pricing of financial products; returns to capital; and long-term financial system solvency. This chapter shows how the new supervisory and regulatory structures are likely to have potentially unexpected effects on long-term individual financial security, growth, capital market performance, and efficient risk allocation.