Whyhasthe

　　＂ 题目： Why has the global capital market grown so rapidly in recent decades?Will this growth continue throu
　　Dictionary of Business defines the capital market as a market in which long-term capital is raised by industry and commerce, the government, and local authorities. The money comes from private investors, insurance companies, pension funds, and banks and is usually arranged by issuing houses and merchant banks. Stock exchanges are also part of the capital market in that they provide a market for the shares and loan stocks that represent the capital once it has been raised. It is the presence and sophistication of their capital markets that distinguishes the industria l countries from the developing countries, in that this facility for raising industrial and commercial capital is either absent or rudimentary in the latter.
　　The global capital market has grown so rapidly in recent decades. So I would like to discuss about it in the essay.   Body
　　1. Why has the global capital market grown so rapidly in recent decades
　　A. The Rise of Capital Market-Based Finance
　　Capital market-based finance has in fact been increasing in importance, both absolutely and relative to financial intermediary-based finance, in both developed and developing countries over the past decade. And also capital markets are in fact winning the present and seem likely to dominate the future of corporate finance in developed and developing countries alike.
　　a. The Stable Role of Commercial Banking in Modern Economies
　　b. The Rapid Growth in Stock Market Capitalization and Trading Volume Since 1983
　　c. The Dramatic Growth in Securities Issuance Volume Since 1990
　　Another way of measuring the rise of capital markets is to examine whether their share of annual corporate financing activity has grown relative to that of other sources of funding. Security offerings by US issuers accounted for two-thirds of the global total throughout 1990-1999, that implies that non-US securities issues in creased from $ 191 billion in 1990 to $ 750 billion in 1998, and then to $ 1.19 trillion in 1999. The surge in non-US issuance volume in 1999 was largely due to the popularity of euro-denominated bond issues, which actually exceeded&n bsp;dollar-denominated bond issues for much of 1999.
　　d. The Phenomenal Growth in Venture Capital Financing in the United States
　　One highly specialized, but extremely important type of financing has also grown very rapidly over the past decade, and especially so since 1997. This is venture capital investment by US venture capital partnerships. The fund-raising patterns of these private equity investors are discussed in Gompers and Lerner (19
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　　8), and the competitive advantages of US venture capitalists versus those in other developed countries are described in Black and Gilson (19
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　　8).
　　e. The Surge in Mergers and Acquisitions Worldwide
　　Next I will document that share issue privatizations have truly transfo＂ rmed share ownership patterns of investors in many different countries.
　　B. Privatization＂s Impact on Stock and Bond Market Development
　　We should be careful in inferring causation regarding privatization＂s impact on market growth, since a shift in ideology or some other exogenous political or economic change might have caused both the privatization and the overall boom.
　　a. Total Proceeds Raised by Privatization Programs
　　b. Privatization＂s Impact on International Investment Banking
　　2. Will this growth continue throughout the 2000s?
　　Summary and Conclusions
　　This essay examines the impact of share issue privatizations (SIPs) on the growth of world capital markets (especially stock markets). I begin by documenting the increasing importance of capital markets, and the declining role of commercial banks, in corporate financial systems around the world. I then show that privatization programs-- particularly those involving public share offerings--have had a dramatic impact both on the development of non-US stock markets and on the participation of inpidual and institutional investors in those stock markets.
　　This has told the reason of the fast growth of global capital market. And then I succinctly indicated the continuance of the rapid growth, the great future.
　　The last but not the least is the recommendation. I can confidently assert that, if executed properly, a series of share issue privatizations can indeed promote the growth of global capital market, which will yield economic and political pidends for many years to come. That means there is a need to encourage the development of SIPs in order to gain growth of global capital market.
　　References
　　Dictionary of Business, Oxford University Press, ? Market House Books Ltd 1996
　　The Economist (April 12, 19
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　　7), ＂Fragile, Handle With Care: A Survey of Banking In Emerging Markets.＂
　　The Economist (April 17, 19
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　　9), ＂On A Wing and A Prayer: A Survey of International Banking.＂
　　Gibbon, H., 2000, ＂Editor＂s Letter,＂ Privatisation Yearbook, London, Thomson Financial, 1.
　　Ljungqvist, A.P., T. Jenkinson and W.J. Wilhelm, Jr., 2000, ＂Has the Introduction of Bookbuilding Increased the Efficiency of International IPOs?＂ New York University Working Paper.
　　Maher, M. and T. Andersson, 1999, ＂Corporate Performance: Effects On Firm Performance and Economic Growth,＂ OECD Working Paper (Paris).
　　Tsuru, K., 2000, ＂Finance and Growth, Some Theoretical Considerations and A Review of the Empirical Literature,＂ OECD Working Paper Series, No 228.
　　data from the Statistics section of the International Federation of Stock Exchange＂s website (www.fibv.com).