Capital Markets in Developing Countries

This book presents the Capital Market Diagnostics
(CMD) model - a tool for evaluating the level of
development of a country''s capital market. The three
step model first looks at the necessary conditions
for a functioning capital market, such as security
and the rule of law. In the second step, factors
supporting the development of the capital market are
considered, based on the supply-demand relationship
between capital and investment opportunities. In the
third and final step the focus is on the
institutions of the capital market, and the model
provides checklists for the evaluation of these
institutions.
The book also describes a field study implementation
of the model, carried out in Georgia in 2006. This
field study provided an opportunity to test and
improve the model, but it also yielded a description
of the Georgian capital market and its specific
problems at that time.
In addition to this the book provides a research
overview of the relationship between financial
system development, capital markets and economic
growth. This overview is of value to anyone
interested in the role of capital markets in
developing countries.

Autorentext
Johan Fredholm holds a MSc in IT and a MSc in Business Administration and Economics. He is currently the Regional Manager for NASDAQ OMX in Armenia. Benjamin Taghavi- Awal holds a MSc in Business Administration and Economics from Stockholm University. He is the founder of Mobikk and works actively with start-ups in Telecom and IT.

Klappentext
This book presents the Capital Market Diagnostics (CMD) model - a tool for evaluating the level of development of a country's capital market. The three step model first looks at the necessary conditions for a functioning capital market, such as security and the rule of law. In the second step, factors supporting the development of the capital market are considered, based on the supply-demand relationship between capital and investment opportunities. In the third and final step the focus is on the institutions of the capital market, and the model provides checklists for the evaluation of these institutions. The book also describes a field study implementation of the model, carried out in Georgia in 2006. This field study provided an opportunity to test and improve the model, but it also yielded a description of the Georgian capital market and its specific problems at that time. In addition to this the book provides a research overview of the relationship between financial system development, capital markets and economic growth. This overview is of value to anyone interested in the role of capital markets in developing countries.