Articles
| Open Access |
https://doi.org/10.55640/eijmrms-05-06-08
Portfolio Investments and Their Impact on The Economy of Developing Countries
Abstract
This article examines the growing role of portfolio investments in the economic development of developing countries. It highlights how such investments provide access to much-needed foreign capital, which can help finance infrastructure, public services, and private sector growth. The article explains how portfolio flows can contribute to the development of domestic financial markets by increasing liquidity, improving price discovery, and promoting transparency and good corporate governance. Additionally, it emphasizes the role of foreign investors in encouraging regulatory reforms and higher standards of financial disclosure.
Keywords
Portfolio investment, developing countries, economic development
References
International Monetary Fund (IMF). (2022). Global Financial Stability Report.
World Bank. (2021). Capital Flows to Developing Countries.
Mishkin, F. S. (2007). The Economics of Money, Banking, and Financial Markets.
Stiglitz, J. E. (2000). Capital Market Liberalization, Economic Growth, and Instability.
Reinhart, C. M., & Rogoff, K. S. (2009). This Time is Different: Eight Centuries of Financial Folly.
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Copyright (c) 2025 Mamajonova Dilafro'z Turgʻunboy qizi, Sultanova Gavhar Karimovna
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Individual articles are published Open Access under the Creative Commons Licence: CC-BY 4.0.