Equity Markets and Economic Development: What Do We Know
نویسندگان
چکیده
The objective of this paper is to review the transmission mechanisms uniting equity market development and economic growth in developing countries. We find that the theoretical impact of equity markets is ambiguous. At the domestic level, the allocation function of equity markets appears conditioned by the extent of informational efficiency. Turning to international linkages, theoretical models suggest that equity market integration lowers the cost of capital, increases financial vulnerability and has a mixed impact on capital flows. Taking this into account, two conclusions arise. First, equity market development policies should focus on reaching and maintaining adequate levels of institutional transparency. Second, the optimal degree of international integration depends on the society’s preference between international accessibility and domestic stability. JEL classification: G11;G12;G15
منابع مشابه
Determinants of Subjective Well-Being; Do We Really Know What Makes People Happy? : A Study Among Rasht Dwellers as a Metropolis in North of Iran
Recently, along with traditional economic indicators, policymakers are increasingly dealing with subjective well-being (SWB) as an evaluation criterion of their performance and as an index for the population’s psychology health. This study tries to define different determinants of SWB with a focus on some specific aspects of the living area. Also, this article investigates outskirt-urban differ...
متن کاملDiagnostic and therapeutic challenges for dermatologists: What shall we do when we don’t know what to do?
What shall we do when we have done everything we could for the diagnosis and treatment of a patient, but were not successful? What shall we do when there is no definite treatment for a patient? What shall we do when we have no diagnosis or treatment for a patient? Some useful suggestions are presented here to get rid of these situations.
متن کاملA National Snapshot of Rural Equity Market Innovation
S mall businesses form the foundation of most rural and urban economies. To grow and prosper, these enterprises need access to equity capital as well as the debt capital provided by traditional banking institutions. While debt markets function well in most rural places, rural equity markets tend to be unorganized or nonexistent (RUPRI Rural Finance Task Force). The impetus for the Rural Policy ...
متن کامل