ABSTRACT
The existence of markets and the performance of markets depend upon a multitude of factors, including trade, storage, consumption diversification and technology (see Foldvari and Van Leeuwen, Chapter 2, this volume). Analogous to the discussion on the factors of economic growth in economics, these factors can be considered ‘proximate’ causes of market performance. They are proximate since they directly affect price setting and, hence, the working of markets. In addition, economic and political institutions as well as geographic characteristics may affect market performance. Using again the analogy with economic growth, these may be considered ‘ultimate’ causes since they only indirectly influence market performance.
