Significance of capital market for economic development

The increase in the percentage of women in the labor force in the U. Analysis of individual variation in physiological functioning has given rise to accurate and powerful statistical indicators for use as diagnostic tools. By agglomerating savings, stock market provide long term capital to both the government and the private sector, thereby enabling them to embark on worthy projects which require large capital injections and enjoy some economies of scale.

Gross domestic product The economic growth rate is calculated from data on GDP estimated by countries' statistical agencies. In countries such as India, the fragmentation of political parties along communal lines, the pressure on politicians to grant unaffordable subsidies to win votes, and the spread of corruption are attributed by some to the granting of democratic freedoms to heterogeneous populations with relatively low levels of education.

Very often they are complementary and mutually supportive. Can the potential for job creation match or outpace population growth in the coming decades. Hence, corporations may find it difficult to raise equity capital. Looking backwards, we see continuity and progress.

Economic growth

In India the traditional habit of saving and paying dowry in the form of gold jewelry continued unabated even after more secure and financially attractive forms of savings became widely available.

They obstinately resisted alien desires and discouraged trade. As we presently utilize only a tiny fraction of the sunlight that shines upon the earth, each person presently utilizes only a tiny portion of their individual potentials and social opportunities.

The capital market facilitates lending to the businessmen and the government and thus encourages investment. This has led to investigation of economies of scale and agglomeration to explain specialization in similar but differentiated product lines, to the overall benefit of respective trading parties or regions.

For countries, they represent untapped potentials arising from the mismatch between the skills of the global workforce and the changing requirements of society. So long as society followed this practice, sedentary civilizations, urban centers and industry could not develop. Customers without knowledge of whether a car is a "lemon" depress its price below what a quality second-hand car would be.

In doing so, they make old technologies or products obsolete. To serve as a broad communication area for its constituencies and the dual role of overseeing the markets and their member-firm participants.

However, besides its self-regulatory actions, the regulation of the Nigerian stock market is achieved through the operations of the Securities and Exchange Commission SEC. Registering all securities proposed to be offered for sale to or for subscription by the public.

Stimulating ideas, initiating policy changes and innovation for the growth of the securities market; ii. What an individual could produce in a lifetime, now is produced in a month, or a week or a day. Distinctions include such production alternatives as for consumption food, haircuts, etc.

Advising the Nigerian government on capital market issues. These are represented in theoretical and empirical forms as in the neoclassical and endogenous growth models and in growth accounting. After the First World War, the allies claimed huge financial charges against Germany as punishment for their aggression.

The encouragement of a more efficient allocation of new investment through the pricing mechanism.

Stock Market Development: Its Impact on the Economic Growth in Nigeria

War destroys infrastructure and interferes with production and trade. We might assume from economic principles that there was no demand for the service or that its cost was too high. This attribute is usually accompanied by the contrary tendency to perceive opportunities as insurmountable obstacles.

Stock market development may also influence corporate control through the take-over mechanism. Determinants of per capita GDP growth[ edit ] In national income accounting, per capita output can be calculated using the following factors:. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where governments work together to address the economic, social and.

RIYADH: The Saudi Council of Economic and Development Affairs (CEDA), has formally approved the Financial Sector Development Program, one of the main programs under the umbrella of the Saudi.

Capital market plays an important role in mobilising resources, and diverting them in productive channels.


In this way, it facilitates and promotes the process of economic growth in the country. Various functions and significance of capital market are discussed below: 1. Link between Savers and.

In examining the relationship between stock market development and economic growth, it is important that we throw light on some key concepts that will enhance a better understanding of the study. Theory of Development. by Garry Jacobs, Robert Macfarlane, and N. Asokan [presented to Pacific Rim Economic Conference, Bangkok, Jan].

Canada's economic development in colonial times was based on the economic policy of economic idea sought to derive the maximum material benefit from the colony, for the homeland, with a minimum of imperial investment in the colony itself.

Significance of capital market for economic development
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Economic history of Canada - Wikipedia