Neo-Classical Growth Model States That Term Paper

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A context of economic stability strengthens the country's status in the world, increases the value of the national currency and attracts foreign investors. But there should also exist a certain level of flexibility in order to encourage investors to open businesses within the country. Foreign investors need both security but also the promises of adaptability and flexibility, which will help them conduct organizational operations.

Stability should be offered by most industries and sectors, as well as national institutions.

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Among the sectors which reveal increased importance in offering stability are the financial sector and the banking sector. The financial sector, supervised by the country's central bank, must be stable as to develop and implement fair financial regulations, maintain an appropriate value of the national currency and reduce inflation. The banking sector has to be stable as to offer numerous credit and savings opportunities for entrepreneurs......

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