The Effect of Financialization of the Economy on Functioning of the Frontier Capital Markets
Journal Title: Проблеми економіки - Year 2015, Vol 2015, Issue 1
Abstract
The article deals with the questions of financialization as a global trend in the development of the world economy which is characterized be the dominance of the financial sector in the processes of market pricing. Considering the fact that the financial system is a key element in any economy, financialization has its effect on the economy of each country. Such characteristics of the development of the Ukrainian economy as low liquidity and capitalization of the financial market, a high systemic risk level, a relative closedness of the market for foreign investors result in classification of the Ukrainian market as a frontier one (in accordance with the MSCI index proposed by the rating agency Standard&Poor’s). The study singles out the specific features of the effect produced by financialization on the economy of Ukraine and, consequently, economic agents within the country. The authors proved that the process of financialization of the world economy has a certain positive influence on countries with frontier capital markets in terms of emergence of new opportunities for their participation in the international capital market, utilization of modern financing tools, enrichment of the global experience of corporate management, etc.
Authors and Affiliations
V. GrischenkoTetyana, Hanna Anzina
Keywords
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