TY  - JOUR
AU  - Henry,Peter Blair
AU  - Lorentzen,Peter Lombard
TI  - Domestic Capital Market Reform and Access to Global Finance: Making Markets Work
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10064
PY  - 2003
Y2  - November 2003
UR  - http://www.nber.org/papers/w10064
L1  - http://www.nber.org/papers/w10064.pdf
N1  - Author contact info:
Peter Blair Henry
Stern School of Business
New York University
44 West 4th Street, 11-58
New York, NY 10012
Tel: 212/998-0909
E-Mail: pbhenry@stern.nyu.edu
AB  - Contrary to the predictions of standard economic theory, capital market liberalization has been a mixed blessing for many countries. Liberalization of debt inflows exposes economies to the risk of crises stemming from sudden changes in investor sentiment. Equity market liberalizations, on the other hand, have promoted growth in almost every liberalizing country. Yet equity market liberalizations have not had as strong an effect as might be expected. To convince outsiders to invest, countries must put in place laws and supporting institutions to protect the rights of minority shareholders. Countries with such protections tend to have larger, more efficient, and more stable stock markets than those that do not.
ER  -