The effect of Capital Market Liberalization on Economic Growth in Developing Countries

One of the most controversial aspects of financial markets is capital market Liberalization of course not so liberalization under the rules of governmental severities. Based on Financial Theories there are a number of reasons, that capital flows openness should lead to increases in economic growth. On the other hand most economists believe that the cost of openness outweigh the benefits, such conventional wisdom not withstanding empirical evidence of liberalization. A causal relation ship between capital market policy to economic growth turns out to be ambiguous at best. and in future, it should rely more on evidence and less on ideology