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The Role of Financial Systems in Economic Growth through Savings and Investment Accumulation
Rudevska V. I., Ukhanova K. O.

Rudevska, Viktoriia I., and Ukhanova, Kateryna O. (2026) “The Role of Financial Systems in Economic Growth through Savings and Investment Accumulation.” Business Inform 1:481–490.
https://doi.org/10.32983/2222-4459-2026-1-481-490

Section: Finance, Money Circulation and Credit

Article is written in English
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UDC 336.01:330.3

Abstract:
The aim of the article is to explore the role of financial systems in fostering economic growth through the accumulation of domestic savings and their transformation into investments, based on a comparative analysis of countries with different economic development models. The significance of the study is driven by the increasing role of financial systems in promoting economic growth amid rising macroeconomic instability, structural shifts, and global shocks. In today’s global economy, traditional sources of growth are increasingly depleting their potential, highlighting the importance of mechanisms for the internal accumulation of savings and their efficient conversion into investments as key factors for long-term development. This issue is particularly relevant in the context of unequal economic development among countries and differences in the functioning models of financial systems. A comparative analysis of economies with high savings and investment levels, developed industrial countries, and post-crisis economies allows for the identification of structural constraints and opportunities within financial systems to stimulate economic growth. At the same time, the slowdown in growth rates in countries with high investment activity highlights the need to reconsider the role of financial intermediation and the quality of investments, rather than just their quantity. This article examines the role of financial systems in promoting economic growth through the accumulation of domestic savings and their conversion into investments. The study combines a theoretical framework with a comparative empirical analysis of individual economies at different stages of development: high-saving countries, developed industrial states, and economies recovering from a crisis. Using macroeconomic indicators such as gross domestic savings, gross capital formation, and real GDP growth, the study identifies structural differences in financial accumulation patterns and their impact on long-term growth dynamics. The results indicate that economies with stable and substantial domestic savings have greater capacity to support investment and long-term growth. However, the strength of this relationship diminishes as development advances toward mature stages. In contrast, countries experiencing structural shocks face chronic investment shortfalls due to weakened saving capacity, significantly limiting economic recovery. The study’s findings highlight that financial systems promote economic growth not only through the volume of accumulated resources but also through the efficiency of financial intermediation and the quality of institutions. The study concludes that strengthening domestic savings mechanisms and enhancing investment efficiency are crucial for boosting economic resilience and supporting sustainable growth, particularly in post-crisis and transitional economies.

Keywords: financial system, savings, investments, economic growth, financial intermediation, capital accumulation, post-crisis economy.

Fig.: 4. Bibl.: 22.

Rudevska Viktoriia I. – Doctor of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance, National University of Life and Environmental Sciences of Ukraine (15 Heroiv Oborony Str., Kyiv, 03041, Ukraine)
Email: [email protected]
Ukhanova Kateryna O. – Student, Rotterdam School of Management, Erasmus University (50 Burgemeester Oudlaan, Rotterdam, 3062PA, Netherlands)
Email: [email protected]

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