IDEAS home Printed from https://ideas.repec.org/a/bjx/jomwor/v2025y2025i1p119-138id623.html
   My bibliography  Save this article

Key Factors in the Development of Capital Markets Globally

Author

Listed:
  • Daniela Șerban (Cojocaru)
  • Viorel-Costin BanÈ›a
  • Raluca Florentina CreÈ›u
  • Daniela ÈšuÈ›ui
  • Andreea Gabriela Tănase

Abstract

This research paper investigates the impact of macroeconomic and institutional factors on the development of capital markets, measured as the ratio of market capitalization to gross domestic product (GDP), on panel data from 47 stock exchanges, both mature and developing markets, from 2008 to 2020. Despite overall economic growth and an increase in market capitalization to GDP ratio between 2008 and 2020, nearly half of the markets experienced negative trends in the post-pandemic and wartime period of 2020. Key findings from regression and VAR models highlight the significant influence of local bank credit, political stability, and broad money on capital market development, with a positive long-term impact of lending interest rates, but a negative effect of foreign direct investment on market capitalization. Policy recommendations include focusing on political stability, promoting financial intermediation, improving SME access to credit, and maintaining moderate inflation and low-interest rates to foster a stable investment environment and encourage public participation in capital markets through education initiatives.

Suggested Citation

  • Daniela Șerban (Cojocaru) & Viorel-Costin BanÈ›a & Raluca Florentina CreÈ›u & Daniela ÈšuÈ›ui & Andreea Gabriela Tănase, 2025. "Key Factors in the Development of Capital Markets Globally," Journal of Management World, Academia Publishing Group, vol. 2025(1), pages 119-138.
    • Handle: RePEc:bjx:jomwor:v:2025:y:2025:i:1:p:119-138:id:623
    as

    Download full text from publisher

    File URL: https://managementworld.online/index.php/mw/article/view/623/384
    Download Restriction: Access to full texts is restricted to Journal of Management World
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjx:jomwor:v:2025:y:2025:i:1:p:119-138:id:623. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucía Aguado (email available below). General contact details of provider: https://managementworld.online/index.php/mw/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.