The Role of Capital Market In Emerging Economy

Abstract

In recent times there has been a growing concern on the role of capital markets in Africa in stimulating economic progress. The argument that African economies may be lagging and that the capital markets may not be providing the needed impetus for financial intermediation and economic progress has been put forward by few number of researchers. A peculiar experience in most African economies is that the challenges with good quality institutions such as democratic accountability could have resulted to the weak capital market development in Africa because they increase political risk and reduce the viability of external finance. This study evaluates capital market and developing economies, challenges to capital market growth, the capital market in Nigeria, capital market and economic growth in Nigeria and policy directions for promoting capital market growth in developing countries.