Common use of Theoretical Framework Clause in Contracts

Theoretical Framework. This study is predicated on the theory of Finance-Growth Nexus, which was developed by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ (1911). According to this theory, financial services are crucial for moving economy forward, so far they increase productivity by fostering technical innovation, investment, and assisting entrepreneurs with the highest prospects of success in the innovation process. He maintained that economic growth might be aided by the mobilization of productive savings, efficient resource allocation, and reinvestment of mobilized financial resources into the economy. By implication, this theory posits that a developed insurance sector is capable of supporting economic growth through financial resources mobilizations in forms of savings for investment, guaranteeing success of entrepreneurs by assuming their business risks, technical innovations in terms of different insurance products capable of attracting the best of businesses into insurance sector.