Abstract:
It is important to find a common understanding of the drivers of capital market development as well as the potential impact that capital market development can have on economic growth and development. Based on this, this paper examines the comparative study of sub-components of the capital market, including gross domestic product, economic stability, financial policy, banking system and institutional investors, financial openness, protection of shareholders' rights and the rule of law in selected countries. It covers the period from 2000 to 2021, and while comparing the results between countries, the situation of Iran is also compared with other countries, which creates the basis for policy-making. The main modelling method in this paper is process and strategy. In order to investigate the development path of the capital market and the policy process for economic growth and development, a comparative comparison based on Beredy’s model is used. The results of presenting the findings of the comparative study in a comparative table, the model proposed by the researcher with the aim of developing the capital market of Iran is presented in the form of a suggested table at the end of the article.
Machine summary:
A Comparative Study of the Impact of Capital Market Components on Economic Growth 1 in Iran and Selected Countries Mehdi Mahmoudrabati PhD student in Public Policy, Islamic Azad University, Science and Research Branch, Tehran, Tehran, Iran.
ir 0000-0002-1391-5483 Abstract Finding a common understanding of the drivers of capital market development and also the potential impact that capital market development can have on economic growth and development is important; accordingly, this research conducts a comparative study of the sub-components of the capital market, including Gross Domestic Product, economic stability, fiscal policy, banking system and financial institutions, financial openness, protection of shareholder rights, and the rule of law in selected countries during the period 2000 to 2021, and while comparing results between countries, Iran's situation is also compared with other countries, which creates a foundation for policymaking.
The capital market finances fixed and circulating industrial capital and also provides medium and long-term loans for central, state, and local governments (Marquis & Rose, 2009; Mishkin, 2007; Egbunike & Nwaolisa, 2013); therefore, due to its ability to facilitate and arrange savings and investment through the financial market, the capital market is a highly specialized, organized, and indeed essential factor for economic growth and development.
On the other hand, according to theoretical foundations, the main components of capital market development consist of: Gross Domestic Product, economic stability, fiscal policy, banking system and financial institutions, financial openness, legal protection of investors, and the rule of law.
The role of the capital market in financial security and economic growth (A case study of Iran and a selection of developing countries).
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