Alternative Investment Management Association Representing the global hedge fund industry
Capital markets are significant drivers of economic growth and increasing their size could compensate for the post-financial crisis decline in bank lending, according to research by two leading academics commissioned by AIMA and published in March 2014.
Growing capital markets by one-third could fuel a long-term increase in the GDP growth rate of 20%, according to the original research outlined in the paper by Christoph Kaserer, Professor of Finance, Chair of Financial Management and Capital Markets, TUM School of Management, Munich, and Marc Steffen Rapp, Professor of Finance, Accounting & Finance Group, School of Business and Economics, Philipps-Universität Marburg, Germany. The paper is titled ‘Capital Markets and Economic Growth – Long-Term Trends and Policy Challenges'.
The research found that capital markets support economic growth by providing new sources of funding for long-term investment and facilitating improvements in corporate governance. It went on to link activities by pension funds, non-bank lenders and active investors such as hedge funds to growth in the real economy. The paper also revealed the extent to which economies traditionally regarded as bank-based have embraced capital markets in recent years and suggests that the old distinctions between the bank-based economic structure of parts of Europe and the more market-based structure of the UK and US are rapidly disappearing.
|Click on the thumbnail to download the research paper, ‘Capital Markets and Economic Growth – Long-Term Trends and Policy Challenges'|
|Click on the thumbnail to download AIMA's companion paper on the research, ‘Capital Markets and Economic Growth – Long-Term Trends and Policy Challenges'|
Press release (English version)
AIMA companion paper (German language version)
Press release (German language version)