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Stock Markets in Low and Middle Income Countries

Author

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  • Ajit Singh

Abstract

This paper explores the question of whether the institution of the stock market is likely to be helpful to low and middle income countries in promoting development of their real economy and ensuring fast industrial growth. The case for and against the stock market inevitably involves a discussion of the important related subjects of corporate finance, corporate governance and corporate law. Contrary to the literature the paper arrives at a negative overall assessment of the institution of the stock market in relation to economic development. It also contributes by its policy proposals concerning the markets for corporate control which again are in conflict with much of the conventional wisdom on the subject.

Suggested Citation

  • Ajit Singh, 2008. "Stock Markets in Low and Middle Income Countries," Working Papers wp377, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp377
    Note: PRO-2
    as

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    File URL: https://www.jbs.cam.ac.uk/wp-content/uploads/2023/05/cbrwp377.pdf
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    References listed on IDEAS

    as
    1. World Bank, 2002. "World Development Report 2002," World Bank Publications - Books, The World Bank Group, number 5984, April.
    2. F. Scherer, 2006. "A New Retrospective on Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(4), pages 327-341, June.
    3. Klaus Gugler & Dennis C. Mueller & B. Burcin Yurtoglu, 2004. "Corporate Governance and Globalization," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(1), pages 129-156, Spring.
    4. Jack Glen & Ajit Singh, 2005. "Corporate Governance, Competition, and Finance: Re-thinking Lessons from the Asian Crisis," Eastern Economic Journal, Eastern Economic Association, vol. 31(2), pages 219-243, Spring.
    5. Ajit Singh, 2005. "Globalisation And The Regulation Of Fdi: New Proposals From The European Community And Japan," Contributions to Political Economy, Cambridge Political Economy Society, vol. 24(1), pages 99-121, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Simon Deakin & Ajit Singh, 2009. "The Stock Market, the Market for Corporate Control and the Theory of the Firm: Legal and Economic Perspectives and Implications for Public Policy," Chapters, in: Per-Olof Bjuggren & Dennis C. Mueller (ed.), The Modern Firm, Corporate Governance and Investment, chapter 9, Edward Elgar Publishing.
    2. Isaac Luke Agonbire Atugeba & Emmanuel Acquah-Sam, 2025. "Economic development, corporate governance, and firm performance in Sub-Saharan Africa," Modern Finance, Modern Finance Institute, vol. 3(1), pages 67-90.
    3. Kim, Jong Hun & Rousseau, Peter L., 2012. "Credit buildups and the stock market in four East Asian economies," Journal of Macroeconomics, Elsevier, vol. 34(2), pages 489-503.
    4. Yongfen Shi & Sudeshna Paul & Sudharshan Reddy Paramati, 2022. "The impact of financial deepening on income inequality: Empirical evidence from Australia," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3564-3579, July.
    5. Ion POHOAŢĂ, & Delia Elena DIACONAÅžU, Author-Workplace-Name: Alexandru Ioan Cuza University of IaÅŸi, 700506, Romania & Oana Ramona SOCOLIUC, 2016. "Economic Dynamics €“ Stock Market Evolution: A Relation Committed To Dysfunctionality In Romania And Croatia," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(1), pages 1-40, January.
    6. repec:agr:journl:v:2(602):y:2015:i:2(602):p:103-112 is not listed on IDEAS
    7. Jelson Serafim, 2021. "Financial deepening, Stock market, Inequality and Poverty: Some African Evidence," Working Papers REM 2021/0177, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    8. , Aisdl, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints ucbhp, Center for Open Science.
    9. Mai, Nhat Chi, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints de8zq, Center for Open Science.
    10. Delia-Elena DIACONAŞU, 2015. "Stock market – economy growth nexus in an emerging country. The case of Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(603), S), pages 103-112, Summer.
    11. Andrew Sheng & Ajit Singh, 2012. "Enhancing Islamic Finance: Establishing an Islamic Stock Market that Overcomes Problems of the Existing Stock Market," Working Papers wp437, Centre for Business Research, University of Cambridge.

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    More about this item

    Keywords

    stock market; market for corporate control; corporate finance; corporate governance; corporate law;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G3 - Financial Economics - - Corporate Finance and Governance

    NEP fields

    This paper has been announced in the following NEP Reports:

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