Stock Market Development and Economic Growth in Nigeria: Evidence from Vector Error Correction Model

2021 ◽  
Vol 55 (4) ◽  
pp. 103-118
Author(s):  
Obinna Franklin Ezeibekwe
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Error Correction ◽  
Error Correction Model ◽  
Market Development ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Stock Market Development ◽  
Vector Error Correction ◽  
Vector Error

scholarly journals Applying the vector error correction model (VECM) to analyze the relationship between economic growth and stock market development in Vietnam

2014 ◽  
Vol 17 (2) ◽  
pp. 73-84
Author(s):  
Nhung Thi Phuong Nguyen
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Granger Causality ◽  
Market Development ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Stock Market Development ◽  
Vector Error Correction ◽  
Turnover Ratio ◽  
Vector Error

The paper researchs the cause-effect relationship between economic growth and stock market development in Vietnam by using vector error correction model (VECM). The results prove that there is a long-term relationship between Vietnamese economic growth and its stock market. Besides, the Granger causality test illustrates that there exists a unidirectional relationship which Vietnamese stock maket development will cause Granger - causality to the economic growth. Thanks to its market capitalization size, Vietnamese stock market performs its role in funding for the economy. But there is not enough evidence to conclude that the stock market’s liquidity and turnover ratio can cause Granger causality to its economic growth. The other findings show that there is only a small contribution ratio of the stock market to the economic growth by using variance decomposition of GDP. Finally, the paper also suggests some policies for Vietnamese Government in improving the stock market’s liquidity and turnover ratio to contribute to the economy in the future.

scholarly journals Impact of conventional banking financing and Islamic banking financing on economic growth 2008-2018

2020 ◽  
Vol 6 (6) ◽  
pp. 1272
Author(s):  
Hasymi Nur Baehaqy ◽  
Eko Fajar Cahyono
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Significant Relationship ◽  
Sampling Technique ◽  
Error Correction Model ◽  
Islamic Banking ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error

This research aims to know Impact of conventional banking financing and Islamic banking financing on economic growth 2008-2018. In this study the authors used a saturated sampling technique found in Non-Probability Sampling. The analysis technique used is VECM (Vector Error Correction Model). Based on the results of the study indicate that there is a one-way relationship on several variables, namely Conventional Banking Financing to GDP and Conventional Banking Financing to Islamic Banking Financing, In the long run, Conventional Banking Financing has a positive and significant relationship to GDP, whereas Islamic Banking Financing has a negative and significant relationship to GDP.Keywords: Banking Financing, Economic Growth, GDP (Gross Domestic Product), VECM (Vector Error Correction Model)

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