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With private capital flows rising from less than 5 percent of world GDP in 1975 to about 20 percent today, privatizations have significantly increased market liquidity. And also privatization takes a potential role global capital market development.
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...
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