Market participants – financial institutions and investors – further elaborated this knowledge, initially developed in and learned from universities, and applied it in practice, fruitfully interacting with centres of higher education. In addition, the education pertaining to the organisation, management and governance of firms also contributed to financial development and enhanced productive efficiency.
The increasing breadth and sophistication of financial markets, in turn, have been conducive to economic growth, for the reasons I outlined above. Intuition and anecdotal evidence suggest that these are reasonable propositions.