HOW CAN CAPITAL MARKET SPUR ECONOMIC GROWTH IN EUROPEAN TRANSITION COUNTRIES? QUALITATIVE FIELD STUDY: BOSNIA AND HERZEGOVINA
HOW CAN CAPITAL MARKET SPUR ECONOMIC GROWTH IN EUROPEAN TRANSITION COUNTRIES? QUALITATIVE FIELD STUDY: BOSNIA AND HERZEGOVINA

Summary/Abstract: After many quantitative research papers confirmed positive relationship between capital markets and growth, this article gives qualitative insight into this relationship. It focuses on transition countries and reasons why capital market in these countries had low performance. We performed a qualitative field study, in order to get deeper insight into primary market activities, and to evaluate overall capital market of Bosnia and Herzegovina. The results show that reason for low overall evaluation of B&H capital market is low level of primary securities issues, which is caused by existence of investment banks and strong financial intermediaries, the knowledge and readiness of companies to issue new securities, and existence of perspective projects in the real sector. Only last item has received high assessment, while all other failed the test. The government should focus on those items in order to develop capital market.

• Details
• Contents