scholarly journals Impact of Khartoum Stock Exchange Market Performance on Economic Growth: An Autoregressive Distributed Lag ARDL Bounds Testing Model

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 86
Author(s):  
Tomader Elhassan ◽  
Bakhita Braima
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Exchange Market ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Stock Market Performance ◽  
The Impact

This study examines the impact of the Khartoum Stock Exchange market performance on economic growth in Sudan from Q1 1995 to Q4 2018. The data were collected from the Central Bank of Sudan (CBS) and Khartoum Stock Exchange (KSE). The autoregressive distributed lag (ARDL) bounds test was applied to estimate the impact of the Khartoum Stock Exchange market performance on economic growth. The results show that the Khartoum Stock Exchange market performance has a limited impact on economic growth. The results of the ARDL test reveal that the speed of adjustment towards long-run equilibrium after a short-term shock, which confirms the stability of Sudanese economic system through stock market performance, equals 24% only. Although market capitalization has a positive and significant impact on economic growth in the long term, the turnover ratio and stocks traded value showed insignificant negative impacts on economic growth. We recommend that suitable investment policies should be developed by policy makers for the Sudanese economy to allow the Khartoum securities market to attract foreign investors and encourage local investors in order to improve the efficiency and effectiveness of the stock market, thus, leading to a boost in securities exchanges as well as economic growth.

scholarly journals Causality between Macroeconomic Indicators and Stock Market: An Econometric Analysis

2021 ◽  
Vol 4 (1) ◽  
pp. 137-155
Author(s):  
Muhammad Imad ud Din Akbar ◽  
Abdul Rauf Butt ◽  
Ali Farhan Chaudhry
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Emerging Economies ◽  
Stock Exchange ◽  
Market Performance ◽  
Simultaneous Equations ◽  
Stock Market Performance ◽  
Macroeconomic Indicators ◽  
The Impact

We attempt to examine the causality between economic growth and stock market performance of Pakistan for the years 1992M01-2012M12. For this purpose, the test devised by Granger (1988) has been employed. The results reveal a bi-directional causality between economic growth and stock market performance of Pakistan proxied by Karachi Stock Exchange capitalization (KSECAP). Once this bidirectional causality is established, a system of simultaneous equations has been specified and estimated by 2SLS to find the impact of economic growth and selected macroeconomic indicators on the stock market of Pakistan. The estimated results lead to the conclusion that economic growth affects the stock market of Pakistan and vice versa. The implications of the study are of paramount importance, especially for the emerging economies. Hence, bearing in mind the role of macroeconomic indicators in the performance of stock market a better policy can be formulated to enhance the growth of capital markets that in turn will increase the economic growth of emerging economies such as Pakistan and vice versa.

Contribution of StockMarket Towards Economic Growth: An Empirical Study on Bangladesh Economy

2017 ◽  
Vol 13 (4) ◽  
pp. 238 ◽  
Author(s):  
Sonia Rezina ◽  
Nusrat Jahan ◽  
Mohitul Ameen Ahmed Mustafi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Market Performance ◽  
Unit Root Test ◽  
Causality Test ◽  
Stock Market Development ◽  
Stock Market Performance ◽  
Augmented Dickey Fuller ◽  
Johansen Cointegration Test ◽  
The Impact

The economic growth of a country is influenced by many different factors. This study aims to investigate the causal relationship between stock market development and economic growth in Bangladesh as well as the impact of stock market performance upon the economic growth of Bangladesh. The stock market performance has been measured by market capitalization ratio, number of listed companies, total value traded and turnover ratio; and the economic growth was represented by real gross domestic product. The periods taken for study were from year 1994 to year 2015.The effect of the stock market reform will also be addressed to explain the relationship. The study has been conducted using Augmented Dickey- Fuller Unit Root Test, Johansen Cointegration Test and the Granger Causality Test. The findings of the research should help the policy makers and regulators to look after their interest in the financial sector of the country.

scholarly journals STUDY OF CONNECTION BETWEEN STOCK MARKET AND ECONOMIC PERFORMANCE IN MALAYSIAN CONTEXT

2020 ◽  
Vol 2 (2) ◽  
pp. 82-90
Author(s):  
Ngee Derk
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Interest Rates ◽  
Stock Exchange ◽  
Exchange Market ◽  
Causality Test ◽  
Vector Autoregressive ◽  
Real Gdp ◽  
Meaningful Relationship ◽  
Stock Market Performance

The focus of the study is to test the stock market performance influence on the economic growth for time series for the period of 2002 to 2018 on quarterly basis. In this study, the performance measures included standard deviation which is measure of volatility, total value traded shared as measure of liquidity, turnover ratio as measure of liquidity, and stock market capitalization ratio as a measure of the size. The focus of the study is the Malaysian stock exchange market. The study utilized real GDP as an indicator of economic growth. The exchange rate and the interest rates are used as control variables. The study used Vector Autoregressive model and the Granger causality test are utilized for finding the directional relationship between the stock market and economic growth connection. Results states that variables are statistically insignificant and there is no meaningful relationship found.

scholarly journals FDI-Led-Growth in Malaysia: Autoregressive Distributed Lag (ARDL) Bounds Testing Approach

2018 ◽  
Vol 11 (11) ◽  
pp. 46
Author(s):  
Jerome Kueh ◽  
Yong Sze Wei
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Positive Impact ◽  
Bounds Testing ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Impact

This study intends to investigate the validity of the foreign direct investment, FDI-led-growth hypothesis in Malaysia in this era. Autoregressive Distributed Lag (ARDL) bounds test approach is adopted to examine the impact of FDI inflow towards growth of Malaysia based on annually data from 1980 to 2016. Empirical results indicate that FDI inflow has significant positive impact on economic growth. This implies that FDI inflow remain important tool for stimulating economic growth of Malaysia. In addition, there is a negative impact of FDI inflow on economic growth during the 1997 Asian Financial crisis and positive impact during the 2008 Global Financial crisis. In terms of policy recommendation, the policy makers should continue to develop strategies to further attract FDI that will contribute to increasing the productivity in the country.

The impact of non-clean energy consumption on economic growth: Evidence from symmetric and asymmetric analyses in the US

2019 ◽  
Vol 31 (2) ◽  
pp. 291-307 ◽  
Author(s):  
Hung-Ming Wu
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Clean Energy ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Us ◽  
The Impact

Non-clean energy consumption is one of the key components of environmental quality. The current study investigates the symmetric and asymmetric effects of non-clean energy consumption (total fossil fuel consumption) on economic growth by including clean energy consumption (nuclear electric power consumption and total renewable energy consumption) as well as capital and financial development in the production function. The linear autoregressive distributed lag and nonlinear autoregressive distributed lag bounds testing approaches were applied to conduct symmetric and asymmetric analyses in the US. The range of analysis is from 1960 to 2015. Ultimately, the study’s findings indicate that non-clean energy has an asymmetric effect on economic growth. In other words, improving environmental quality (by decreasing non-clean energy consumption) will reduce economic growth in the long term, but not in the short term. This research is therefore applicable for policymakers in the US.

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