The Development of Local Capital Markets: Rationale and Challenges
December 19, 2014
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Summary
Capital markets can improve risk sharing and the efficiency with which capital is allocated to the real economy, boosting economic growth and welfare. However, despite these potential benefits, not all countries have well developed capital markets. Moreover, government-led initiatives to develop local capital markets have had mixed success. This paper reviews the literature on the benefits and costs of developing local capital markets, and describes the challenges faced in the development of such markets. The paper concludes with a set of policy recommendations emerging from this literature.
Subject: Capital markets, Financial market infrastructure, Financial markets, Financial regulation and supervision, Securities markets, Securities regulation, Stock markets
Keywords: bond market, bond markets, capital market, capital market development, Capital markets, economic development, Financial market infrastructure, financial markets, fully fledged physical capital capital market, Global, investor right, local capital markets, market, market conduct, market development, market size, physical capital, Securities markets, Securities regulation, stock markets, WP
Pages:
25
Volume:
2014
DOI:
Issue:
234
Series:
Working Paper No. 2014/234
Stock No:
WPIEA2014234
ISBN:
9781498372978
ISSN:
1018-5941
