APPRAISING THE DETERMINANTS OF CAPITAL MARKET DEVELOPMENT: THE RETROSPECT AND PROSPECTS FOR THE CEMAC ZONE.

An integral part of capital market is the stock market - the development of which is linked with the country\'s level of savings, investment and rate of economic growth. This article in all its potency, seeks to investigate the determinants of capital market development and its legal trends and challenges in the CEMAC zone. In this regard, it scrutinizes and provides further evidence on the relationship between capital market development and economic growth, using information from the CEMAC sub-region. Thus, from this, the findings obtain reveal that the initiatives of capital market development and capitalization can induce economic growth in the CEMAC countries. In this light, the perception and significance of the determinants of capital market development considered in this article, provides encouraging signals for the CEMAC countries to emulate and explore capital markets, as potential avenue for enhancing and expediting economic growth. More so, the incidence of corruption, rule of law and quality of regulatory framework are identified as the most important institutional frameworks that determine the attractiveness of African countries to the inflow of FDI. Therefore, the article suggests that there is need for the CEMAC countries to initiate viable and sustainable policies that are capable of improving the institutional environment, in order to enhance the effective and efficient development and performance of the capital markets, and ultimately, boost the attractiveness of the sub-region to the inflow of FDI and, thus, economic growth.