Abstract

The research handles phenomenon of financial frictions as an important and significant financial variables in recent years facing developed and emerging economies specially after crisis (2007-2009). the literatures focused on frictions for many reasons: it caused big different between returns for economic activities ,missing in total factors production specifically in capital, and increasing unemployment rates because of changes in firm behaviors and capital directing, furthermore correlatives or (inseparables) with firms formation, financial shocks and endogenous growth. the research concluded in its analysis a set of conclusions namely: interchange relation between frequent phenomenon of crises emerged financial frictions and priority between them.