capital market liberalization

Capital market liberalization refers to the process of reducing restrictions on the flow of financial assets—such as investments, currencies, and capital—between a country and the global economy. It aims to make it easier for businesses and individuals to invest abroad or attract foreign investment. This openness can lead to increased capital availability, better integration into global markets, and economic growth. However, it also introduces risks like increased volatility and exposure to external economic shocks. Overall, liberalization seeks to create a more dynamic, efficient financial environment aligning domestic markets with international standards.