The financial market problems from some developing countries point of view and its policy implications
Please cite the paper as:
Mehdi Mohammadi, (2012), The financial market problems from some developing countries point of view and its policy implications, World Economics Association (WEA) Conferences, No. 3 2012, Rethinking Financial Markets, 1st November to 31st December, 2012
In this paper by utilizing institutional and evolutionary economics concepts and micro-meso-macro framework, first differences in the developing countries financial system have been identified with the acknowledgement of underdevelopment in information transition stages of states and laws, and the institutionalization of science and technology. Then most important financial system theories from different schools of thought have been reviewed in order to make some essentials for the developing countries financial economics by assistance of these theories concepts and aforementioned framework. As a result of these premises, in the developing countries micro financial economics, beside household and firms, other micro units such as tribe, clan, and village have been introduced and on the macro financial economics, state and international financial environment were considered as two important players. These elements and players interactions lead to a situation that most traditional micro units are isolated from financial system and the integration to global financial system mostly depends on state approach of international relationship with developed countries.