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Emergence of alternative capital markets in developing countries as a process of institutional change

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  • Waśniewski, Krzysztof

Abstract

The present paper attempts to assess whether at all and in what ways the development of alternative capital markets may help an additional mobilisation of the given economy's domestic financial resources, and, consequently, contribute significantly to economic development. Against the theoretical background of both the old and the new institutional schools, a model of institutional change, leading to the emergence of alternative capital markets, is introduced. Using the theory of games as the theoretical tool to formalize, the model leads to conclude that the institutional change in question is only partial and incremental. In the same time, it demonstrates that if developing countries already have or can create strong technological hubs in their territories, alternative capital markets can spur technological progress and economic growth, even if the main capital markets, being the benchmark for those, are in other countries.

Suggested Citation

  • Waśniewski, Krzysztof, 2010. "Emergence of alternative capital markets in developing countries as a process of institutional change," MPRA Paper 26681, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:26681
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    References listed on IDEAS

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    More about this item

    Keywords

    institutional economics; strategy; emerging markets;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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