Capital Markets And Economic Development: A Framework For Newly Liberalized Economies

Abstract

One of the main objectives of this study is to show the necessity of capital markets and the sine qua non condition for their effective and efficient use for economic development.  I relied heavily on a large body of scientific literature and empirical evidence to support my assertions.  The implementation of capital markets requires time and more importantly cooperation between the government authorities and the private sector.  I believe that the efficient functioning of capital markets presupposes a favorable economic and political environment and a corresponding appropriate institutional support for this environment.  The confidence in the future and the confidence of the investors in this future are the sine qua non for the success of these capital markets.  Thus, the role of the government in providing this confidence is pivotal to the implementation of efficient capital markets and to the propelling of economic development.