scholarly journals A Study Of The Relationship Between Stock Market Development And Economic Growth And Development For 1994 To 2003

2011 ◽  
Vol 7 (5) ◽  
Author(s):  
Carl B. McGowan, Jr.
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Growth And Development ◽  
National Income ◽  
Capital Allocation ◽  
Gross National Income ◽  
Stock Market Development ◽  
Economic Growth And Development ◽  
Economic Output ◽  
The Relationship

In this paper, we discuss the relationship between the level of economic development and the size of the stock market relative to the total economic output. We find a positive relationship and statistically significant regression coefficients between gross national income per capita and total stock market capitalization to gross national income for each year from 1994 to 2003 for between seventy-eight and one hundred and two countries. A well developed stock market facilitates capital allocation in an economy which is necessary for economic growth and development and provides the large pools of funds to successful entrepreneurs needed for corporate growth.

scholarly journals The Relationship Between Stock Market Development And The Opacity Index

2013 ◽  
Vol 12 (9) ◽  
pp. 1131
Author(s):  
John Kamiru ◽  
Carl B. McGowan, Jr.
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Institutions ◽  
Growth And Development ◽  
Rate Of Return ◽  
Market Development ◽  
Stock Market Development ◽  
Economic Growth And Development ◽  
The Relationship

In this paper, we investigate the relationship between stock market development and the Opacity Index for 2005/2006, 2007/2008, and 2009. The role of financial institutions in promoting economic growth and development is well established. The specific role of the stock market in economic growth and development is to provide capital to entrepreneurs and growing companies and to direct capital to companies that provide the highest rate of return. The Opacity Index is a measure of transparency for an economy and measures the degree of transparency in an economy. We find a statistically significant relationship between the Opacity Index and the ratio of stock market capitalization divided by GDP for a sample of 45 countries for which the Opacity Index is provided.

Economic Dependence and Economic Empiricism in Black Africa

1977 ◽  
Vol 15 (1) ◽  
pp. 116-118
Author(s):  
Sheila M. Smith
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Growth And Development ◽  
Fundamental Problem ◽  
Economic Dependence ◽  
Economic Growth And Development ◽  
Negatively Associated ◽  
Measures Of Dependence ◽  
Black Africa ◽  
The Relationship

Patrick McGowan has recently attempted to examine the relationship between ‘Economic Dependence and Economic Performance in Black Africa’ in this Journal, Vol. xiv, No. I, March 1976, pp. 25–40. His article reemphasised the need for concrete analysis since the generalities of ‘dependence’ have been more extensively studied than their concrete expressions. However, a fundamental problem of his analysis is that the criteria for verifying the theory of dependence are unrelated to the theory itself: the ‘test’ devised is a series of correlations between measures of dependence and indicators of economic performance, since ‘the theory [of dependence] predicts that dependence is negatively associated with indicators of economic growth and development’ (p. 27). Part of the problem is that McGowan does not really define ‘dependence’, but in addition it is not at all clear why this is expected to be negatively associated with indicators of economic growth.

scholarly journals Stock Market Development and Economic Growth in Malaysia: A Revisit from 1982 to 2014

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Lee Kok Fong ◽  
◽  
Mori Kogid ◽  
Jaratin Lily ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Annual Data ◽  
Stock Market Development ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Financial Decision ◽  
Stationarity Test ◽  
Bound Test ◽  
The Relationship

The study examines the relationship between the development of the stock market and economic growth in Malaysia using annual data from 1982 to 2014. The development of the stock market represented three indicators, namely the turnover ratio, the shares value traded ratio and the market capitalization ratio. Augmented Dickey-Fuller stationarity test was carried outprior to the use of a bound test approach for co-integration and causality testing. The findings of the co-integration analysis showed that there is evidence of a long-run relationshipbetween economic growth andthe development of the stock market. Further examination of the causal relationship showed proof of the short-runinteraction between economic growth andthe development of the stock market. These findings may be of importance to policymakers in formulating growth policy and financial decision-making by investors.

scholarly journals Reviewing the Equilibrium and Causal Relationships between Stock Market Development and Economic Growth in Jordan

2019 ◽  
Vol 11 (12) ◽  
pp. 37
Author(s):  
Eyad M. Malkawi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Developing Economies ◽  
Market Development ◽  
Causal Relationships ◽  
Stock Market Development ◽  
Ardl Approach ◽  
Show Evidence ◽  
The Relationship

The relationship between stock market development and economic growth has been diversely investigated by many researchers. This paper investigates the equilibrium and causal relationships between stock market development and economic growth in Jordan for the 1980-2018 period. It employs the ARDL approach and the results show evidence of a co-integration and causal relationships between variables. These results are broadly consistent with similar studies carried out for other developing economies.

scholarly journals Pertumbuhan ekonomi dan ketimpangan pembangunan ekonomi antar wilayah kebijakan pembangunan di Provinsi Jawa Timur

2017 ◽  
Vol 5 (2) ◽  
pp. 163
Author(s):  
Maretha Berlianantiya
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Development Policy ◽  
Growth And Development ◽  
Secondary Data ◽  
Measure Development ◽  
Policy Area ◽  
Economic Growth And Development ◽  
Analysis Technique ◽  
The Relationship

<p><em>This study aimed toknow the relationship and the pattern between economic growth and inequality of economic development in East Java at 2004- 2013. It is determined by the characteristics of development policy area in East Java at 2004- 2013.This research is carried out in East Java province that contains of 29 regencies and 9 cities. They are divided into 4 Bakorwil. This research uses the secondary data, then analyzed by analysis technique of Williamson Index to measure development inequality, correlation of moment product and Regression Curve Estimation.The results of this research are (1) the relationship pattern between economic growth and development inequality tends to be “U” so Kuznets hypothesis does not apply in East Java, and the correlation value of product moment does not significant so the relationship economic growth and development inequality cannot be described. (2) In each Bakorwil, the relationship pattern between economic growth and inequality of economic development is influenced by the characteristics of development policy area in East Java province, likewise with its correlation.</em></p>

scholarly journals Factors Inducing the Investment and Saving Behaviour in Pakistan

2019 ◽  
Vol 1 (2) ◽  
pp. 82-88
Author(s):  
Muhammad Farhan Ashraf ◽  
Muhammad Mehran Latif ◽  
Hina Kanwal
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
World Bank ◽  
Growth And Development ◽  
Participation Rate ◽  
Study Data ◽  
Economic Growth And Development ◽  
Independent Variables ◽  
National Investment ◽  
The Relationship

This study endeavour’s to identify in detail the behaviour of investment and saving in Pakistan's economy. Both investment and saving have a dynamic role in economic growth and development. Gross domestic product, remittances, income, dependency rate, taxes, labor participation rate, national saving, and national investment are included as independent variables for this study; data were obtained from the Pakistan Bureau of Statistics and World Bank for the years (1980-2016). The results show that the relationship between Investment and Interest rate is negative, while the relationship between saving and interest rate is positive. There is a dire need to review the monetary policy issued by the State Bank of Pakistan.

scholarly journals Effects of Stock Market Development on Economic Growth in Nepal

2019 ◽  
Vol 8 ◽  
pp. 87-96
Author(s):  
Krishna Babu Baral
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Exchange ◽  
Secondary Data ◽  
Market Development ◽  
Stock Market Development ◽  
Simple Regression Model ◽  
Analytical Research ◽  
Ministry Of Finance ◽  
The Relationship

Financial intermediaries and stock markets are important for the economic growth. The relationship between stock market development and economic growth has been extensively studied in the recent years. This study used analytical research design that involves bi-variate analysis by using simple regression model to examine the relationship between stock market development (measured by size and liquidity of the stock market) and economic growth (measured by logarithm of capital GDP at constant price) in Nepal during the period 2007-2017. Secondary data were collected from the official websites of Ministry of Finance (MoF) and Nepal Stock Exchange (NEPSE). It is assumed that economic growth is the function of stock market development for the purpose of data analysis. Empirical results of this study indicate significant positive relationship between economic growth and stock market development. Moreover, stock market development explained considerable variations in economic growth of Nepal i.e. size of the stock market explained 57.7 percent, and liquidity of the stock market explained 41.6 percent variation in economic growth of Nepal.

scholarly journals What Are The Channels Through Which Bank Liquidity Creation Affects GDP? Evidence From an Emerging Country

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110223
Author(s):  
Muhammad Umar ◽  
Muhammad Safdar Sial ◽  
Yan Xu
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Government Expenditure ◽  
Financial Intermediaries ◽  
Economic Growth And Development ◽  
Economic Output ◽  
Net Exports ◽  
Emerging Country ◽  
Chinese Banks ◽  
The Impact

Gross domestic product (GDP) depends on myriad factor and financial intermediaries especially banks play a very important role in economic growth and development of a country. They not only lend loans rather also generate liquidity—which is very important for the smooth functioning of an economy. Therefore, this study explores the channels through which bank liquidity creation affects GDP. It uses the data from listed and unlisted Chinese banks ranging from the year 2006 to 2017. The results of the analysis reveal that the liquidity creation by Chinese banks significantly negatively affects economic output. The magnitude of the impact of small-bank liquidity creation is greater than the large banks. Variation in the GDP is explained by current and previous year’s liquidity creation. Cat-fat measure of liquidity creation affects GDP directly as well as through consumption, investment, government expenditure, and net exports channels; however, cat-nonfat measure affects economic output directly and through all aforementioned channels except net exports. Overall, the findings support the hypothesis that liquidity creation affects the economy directly as well as through different channels.

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