Abstract

In recent years, many large developing countries in their macroeconomic performance in terms of a strong upward trend. The wave of development is often attributed to "scale" - by virtue of economies of scale, economies of scope and economies of agglomeration effects as a result of an increase in productivity. By the characteristics of financial development has been embedded into the theory of growth and scale, you can test developing country financial development and the relationship between economic growth, analysis of their output, investment, trade and financial linkages between the effects of large developing countries to grasp the overall trend. When the financial crisis, economic stimulus should tend to trade and investment, rather than the financial sector, that is, in large developing countries, the whole financial development to economic stimulus is significantly lower than the trade and investment in two The most important entities in the economic field. Large developing economies demonstrate an upward trend in many aspects of their macroeconomic performance in recent decades. This developmental surge is attributed to 'size effects' whereby economies of scale and scope, and agglomeration impact, create productivity improvements. The transmission channels from finance to growth are discussed to show how size effects can affect this transmission channels in terms of specific features in four typical developing countries. The empirical estimation concentrates on econometric regressions for these specific large developing countries-Brazil, India, China and South Africa, involving analyzing dynamic shocks from investment, trade and financial growth, together with several variables of indicating size-effect: education investment, government spending, and military expenditures