The role of public policy in developing underperforming capital markets: international experience and implications for Ukraine

Анотація

Introduction. Capital markets are important for economic growth because they help savers and investors share their money in a way that makes the most sense. For rising economies, especially those that are having trouble rebuilding after a war, it is important to have strong capital markets to attract both domestic and foreign investment. The purpose of the paper is to look at how public policy can help improve capital markets that aren't doing well. It does this by looking at what has happened in other countries and drawing conclusions about what Ukraine must do to improve its capital market while the war is still going on and, in the future, when it needs to rebuild. Results. It has been shown that successful capital market development needs broad policy frameworks that include things like harmonizing regulations, building up institutions' capacity, changing the pension system, and protecting investors. Public policy changes need to deal with both supply-side issues (like institutional frameworks and market infrastructure) and demand-side issues (like investor confidence and financial literacy). This has been shown to be true in the European Union, Asian emerging markets, and economies that have been through a conflict. Ukraine's capital market has certain specific problems, including as prohibitions during warfare, a small market capitalization, and gaps in regulation. Conclusion. For the capital market in Ukraine to flourish, the government should focus on making sure that investments are secure, aligning legislation with EU norms, setting properly funded pension systems, and strengthening market infrastructure. All these things should be done while simultaneously satisfying the special needs for funding during war and rebuilding.

Класифікація

Ідентифікатори

Схожі роботи