Emergence of Alternative Capital Markets in Developing Countries as a Process of Institutional Change

15 Pages Posted: 14 Nov 2010

See all articles by Krzysztof Waśniewski

Krzysztof Waśniewski

Andrzej Frycz Modrzewski Krakow University

Date Written: November 14, 2010

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.

Keywords: Institutional Economics, Strategy, Emerging Markets

JEL Classification: D20, D21, D23, D92, G10, O16

Suggested Citation

Waśniewski, Krzysztof, Emergence of Alternative Capital Markets in Developing Countries as a Process of Institutional Change (November 14, 2010). Available at SSRN: https://ssrn.com/abstract=1708712 or http://dx.doi.org/10.2139/ssrn.1708712

Krzysztof Waśniewski (Contact Author)

Andrzej Frycz Modrzewski Krakow University ( email )

ul. Herlinga Grudzińskiego 1
Kraków
Poland

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