C/F/92. Dissertation. The importance of capital markets for Ukraine

This dissertation elaborates on the question of the most optimal financial structure for the emerging economy such as Ukraine. Thorough theoretical analysis of the previous findings is made at the beginning. The importance of well-developed financial markets for economic growth is illustrated on the example of empirical studies investigating the role of financial markets in developed and transition economies. The debate about market-based versus bank-based financial system is also scrutinized. The author of this work, however, adheres to the point of view that both systems are equally important for economic development, though different stages of economic reforms may require particular attention to either of the two systems. The second part of the dissertation deals with the overview of the success the Ukrainian economy demonstrated in 2004-2005 with particular focus on the industries which brought about this breakthrough. Then, the importance of capital markets for Ukraine is stated and supported by the connection to theoretical considerations from the first part. The author also shows the weaknesses which should be addressed by the new government, mainly lagging behind legislation, enforcement and regulatory agencies etc. This work would be extremely useful for those who want produce research comparing bank-based and market based financial structure with respect to emerging economies.