The banking and finance sector's contribution to gross domestic product has risen significantly in the last three decades. It now comprises the largest share of the economic output of any industry in...

The banking and finance sector's contribution to gross domestic product has risen significantly in the last three decades. It now comprises the largest share of the economic output of any industry in Australia. Research reports from OECD countries suggest that oversized financial sectors can slow economic growth and widen inequality. 1. Outline the financial institutions and markets whose expansion can help economic productivity and growth according to finance literature. Also, outline the institutions and markets which hinder economic productivity and growth. Discuss Australia and overseas countries. 2. If the Australian manufacturing sector had the highest growth rate over the past serval decades and held the largest share of Australian GVA, would you consider the industry to be oversized? Explain your answer by referring to the similarities or differences between the finance and manufacturing sectors.