JAPAN’S ROLE AND POSITION IN THE GLOBAL CAPITAL MARKET

Abstract

Japan's role and position in the global capital market have been a subject of significant interest and analysis. The country's capital market has unique characteristics and historical developments that have shaped its current standing. Japan's economy, as the third-largest globally, has a substantial impact on the financial landscape. Despite its potential to become a global financial center, Tokyo has faced challenges due to a risk-averse capital environment and limited diversity in domestic markets. The Japanese capital market has historically been dominated by banks, but over the years, it has been evolving, becoming broader and deeper, capable of handling larger and more innovative transactions. The market's growth has been fueled by domestic economic changes and an increasing international role for Japan's economy and financial system. The internationalization of the yen has been a strategic move to attract global investors and enhance the market's competitiveness. As Japan continues to adapt to both domestic and global economic forces, its capital market is undergoing structural changes to align more closely with major global markets. The ongoing process of liberalization and integration with world markets is driven by Japan's economic success and its ability to navigate international trade dynamics.