Articles | Open Access |

BARRIERS TO INVESTMENT: CHALLENGES IN THE DEVELOPMENT OF THE BANGLADESH CAPITAL MARKET

Dr. Shakib Rasul , Gha- Kazi Abdur Rouf Road, Kalta Bazar, Sutrapur Dhak, Bangladesh

Abstract

The capital market in Bangladesh has the potential to play a pivotal role in the country's economic growth and development. However, various barriers hinder its progress and limit its effectiveness in mobilizing capital for businesses and infrastructure projects. This study investigates the key challenges faced by the Bangladesh capital market, focusing on regulatory issues, market infrastructure, investor awareness, and economic factors. Through a mixed-methods approach that includes qualitative interviews with market participants and quantitative analysis of market performance data, the research identifies systemic weaknesses and constraints that impede investment. The findings reveal that factors such as inadequate regulatory frameworks, lack of transparency, low investor confidence, and limited access to information significantly impact market development. This study aims to provide actionable recommendations for policymakers and stakeholders to address these barriers, ultimately fostering a more robust and inclusive capital market that can contribute to Bangladesh's sustainable economic growth.

Keywords

Bangladesh Capital Market, Investment Barriers, Market Development

References

Adjasi, K. C., and Biekpe, N. (2006). “Stock Market Development and Economic Growth: The Case of Selected African Countries,” African Development Review, Vol.18, no. 1, pp. 144-161

Agarwal, S., (2001), “Stock Market Development and Economic Growth: Preliminary Evidence from African Countries”, Journal of Sustainable Development in Africa, vol.3, no. 1, pp. 48-56.

Bencivenga, V. R., and Smith, B. D. (1996), “Equity Markets, Transaction Costs, and Capital Accumulation: An illustration”. The World Bank Economic Review, Vol. 10, no.2, 241-265.

C PD. 2011c. Release of WEF’s Global Competitiveness Report 2011-12 and Bangladesh Business Environment Study 2011. Presentation released to the media by the Centre for Policy Dialogue (CPD), 8 September, Dhaka.

Hearn, B., and Piesse, J. (2010), Barriers to the Development of Small Stock Markets: A Case Study of Swaziland and Mozambique”. Journal of International Development, Vol. 22, 1018- 1037.

K.J. Kemboi AND T. D. Kipkirong, (2012), “Macroeconomic Determinants of Stock Market Development in Emerging Markets: Evidence from Kenya”, Research Journal of Finance and Accounting, Vol. 3, No 5. Pp.57-68

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., and Vishny, R. W. (1998), Law and Finance, Journal of Political Economy, Vol. 106: 1113- 1155.

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., and Vishny, R. W. (1997), Legal Determinants of External Finance. Journal of Finance, Vol. 52: 1131-1150.

Levine, R., and Zervos, S. (1998). Stock Markets Banks and Economic Growth. American Economic Review, Vol. 88: 537-558.

Article Statistics

Downloads

Download data is not yet available.

Copyright License

Download Citations

How to Cite

Dr. Shakib Rasul. (2024). BARRIERS TO INVESTMENT: CHALLENGES IN THE DEVELOPMENT OF THE BANGLADESH CAPITAL MARKET. International Journal of Economics Finance & Management Science, 9(10), 1–5. Retrieved from https://scientiamreearch.org/index.php/ijefms/article/view/131