"Does finance matter for growth in the small, open Pacific Island Countries?" by Sharma and Gounder, 2013.

In reference to the above article, answer the following questions:

1. What is the motivation for this paper? Provide a highlight for the format and content of this paper.

2. According to Fitzgerald (2009), what are the five broad functions that financial systems may provide?

3. Clarify this statement: "While all financial systems may provide the five functions, the impact on economic growth depends on how well these are provided." [p. 22, 1st paragraph.]

4. According to Sharma and Gounder (2013), why is the role of finance in fostering growth in the Pacific appears to be less important?

5. According to Beck et al (2007) and Claessens and Feijen (2007), how can better financial systems help with major social and environmental problems? [p. 22, 3rd paragraph.]

6. Describe the dataset, data sources and sample periods. Briefly state the empirical approach.

7. Define all the variables included in the empirical model.

8. How do the authors justify the selection of sample countries for data analysis?

9. Explain what is reported in Table 1. Provide highlights for the results reported in the table.

10. Explain the significant estimates of variables reported in Table 1 and their implications.

11. Based on the empirical findings, what are the policy implications? Elaborate on each policy implication.

12. Elaborate on Sharma and Nguyen's (2010) point that the financial development approach that works well in one country may not necessarily be suitable for another country. [p. 25, last paragraph]

13. What are the major findings of this article? What are the major contributions of this article?

14. In what ways can this article help your group in doing the research project for this course?