2011-20: Re-Designing Financial Systems: A Review of the Role of Stock Markets in Developing Economies (Working paper)

Abstract

In the wake of the GFC-prompted worldwide review of financial systems and structures, this article argues for a need to re-examine the role of stock markets in some developing economies. Despite a general surge, in some economies, the pace of development has been lacking and the potential for growth appears limited. Importantly, the idea of imposing or embracing this component of the developed world's financial model appears amiss; stock markets may be less useful than previously thought. It is time to re-examine the applicability of the banking-plus-stock market model in the case of some economies.