Creating Domestic Capital Markets in Developing Countries : Perspectives from Market Participants

Demekas, Dimitrios G. ; Nerlich, Anica

International Finance Corporation, Washington, DC

关键词: EMERGING MARKET ECONOMIES;    CAPITAL MARKETS;    DOMESTIC CAPITAL MARKET DEVELOPMENT;    PRIVATE INVESTMENT;    PUBLIC DEBT;   

RP-ID  :  147671

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Domestic capital markets that are deep,efficient, and well-regulated can create access tolong-term, local-currency finance. Interviews with marketparticipants reveal four important findings. First, thereare two distinct phases of capital market development, anembryonic phase in which the government is predominant and amature phase in which the capital market starts to serve theprivate sector. Each phase has distinct preconditions anddrivers that determine the success of capital marketdevelopment. Second, capital market development requirescontinuous monitoring and policy interventions due tochanging market stages, some of them stable but suboptimal.Third, while capital markets are a crucial source of largevolume, long-term local currency finance, they often failsmaller countries and companies. Finally, as the capitalmarket develops, intangible or ‘soft’ factors become moreimportant, including financial sophistication, a culture oftrading and risk-taking, the quality of human capital, andan appreciation of transparency.