Yanyun Zhao, Yuqi Ma, Ruipeng Hu

【Abstract】

A capital market competitiveness evaluation path of “institutional environments- market efficiency and capital cost- market dynamics-economic development” is created based on data 2009-2014 from Competitiveness Yearbook of Institute of International Management and Development, Lausanne, Switzerland. Accordingly, a Capital Market Competitiveness Structural Equation Model is constructed. Path coefficients of latent variables affecting capital market competitiveness and indexes of each latent variable of different countries are calculated and compared. Good institutional environment has significant effect on lowering capital cost, increasing capital efficiency, increasing market dynamics and improving economic development. The capital market competitiveness of the United States has leading advantage in the world. Chinese capital market is active, but finance regulation and legislation construction are still not sound, capital market efficiency should be improved and capital cost should be lowered.

【Keywords】

capital market, international competitiveness, institutional environment, market dynamics