Answer to Question #155086 in Macroeconomics for Wajahat Ali Raki

Question

The role played by capital markets in mobilizing domestic resources for raising national productivity ?

Answer 1

Capital markets are financial markets with a network of specialized financial institutions, infrastructure and processes that facilitate the bringing together of suppliers and users of medium to long term capital

Capital markets contribute to raising national productivity through the following ways:

1. Creating a bridge between suppliers of capital and users
2. Facilitating efficient allocation of scarce financial resources
3. Promoting savings and investments
4. Financing private public partnerships
5. Financing utility and infrastructure