Does the emergence of a stock market require a well-developed legal and/or regulatory system? This article provides an in depth case study of the Czech stock market and finds that (a) Czech capital markets have been hindered by government intervention from their beginning, (b) that the evidence on Poland's superior performance is not as strong as suggested, and (c) that Czech regulators seem to be unqualified, lack the proper incentives, and are unlikely to benefit the market.
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Citation: Boettke, Peter, Edward Stringham and J.R. Clark. "Are Regulations the Answer for Emerging Stock Markets? Evidence from the Czech Republic and Poland." Quarterly Review of Economics & Finance 48, no. 3 (2008): 541-566.