Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore
International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 3, June 2014, Pages: 220-226
Received: Apr. 30, 2014; Accepted: May 29, 2014; Published: Jun. 10, 2014
Views 4053      Downloads 366
Authors
Muhammad Aamir Ali, School of Commerce and Accountancy, University of Management and Technology, Lahore, Pakistan
Nazish Aamir, School of Commerce, University of Central Punjab, Lahore, Pakistan
Article Tools
Follow on us
Abstract
Stock market is the only source through which we can come to know about the volume of interest showed by investors by buying and selling the shares of listed companies. This paper is written to empirically show the GLS regression analysis based on panel data (1991-2011) that unto how significantly economic growth is influenced by stock markets. The econometric models are made by considering GDP per capita as dependent variable and stock markets’ variables, FDI, Investments, EXP and GDS as explanatory variables. The models are made to study by taking stock market size and liquidity separately and then collectively. Results show that GDP per capita is significantly explained by independent variables.
Keywords
GDP Per Capita, FDI, Investments, EXP and GDS
To cite this article
Muhammad Aamir Ali, Nazish Aamir, Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore, International Journal of Economics, Finance and Management Sciences. Vol. 2, No. 3, 2014, pp. 220-226. doi: 10.11648/j.ijefm.20140203.13
References
[1]
Baboo M Nowbutsing, University of Mauritius, Reduit, Mauritius M. P. Odit, University of Tech-nology, Mauritius (2009),” Stock Market Development And Economic Growth: The Case Of Mauri-tius”. Volume 8, Number 2
[2]
Muhammad Enamul Haque and Nahid Fatima (2011),” IN-FLUENCES OF STOCK MARKET ON REAL ECONOMY:A Case Study of Bangladesh” The Global Jour-nal of Finance and Economics, Vol. 8, No. 1, (2011) : 49-60.
[3]
AKTHAM MAGHAYEREH (2003),” Causal Relations among Stock Prices and Macroeconomic Variables in the Small, Open Economy of Jordan” JKAU: Econ. & Adm., Vol. 17, No. 2, pp. 3-12 (1424 A.H./2003A.D.).
[4]
Ross Levine; Sara Zervos (Jun., 1998),” Stock Markets, Banks, and Eco-nomic Growth” The American Economic Review, Vol. 88, No. 3. (Jun., 1998), pp. 537-558.
[5]
Ake Boubakari and Dehuan Jin (2010),” The Role of Stock Market Development in Economic Growth: Evidence from Some Euronext Countries” International Journal of Financial Research Vol. 1, No. 1; December 2010 14 ISSN.
[6]
Hamid Mohtadi and Sumit Agarwal,” Stock Market Development and Economic Growth:Evidence from Developing Coun-tries”.
[7]
Imran Ali, Kashif Ur Rehman, Ayse Kucuk Yilmaz, Muhammad Aslam Khanand Ha-san Afzal (2010),” Causal relationship between macro-economic indicators and stock exchange prices in Pakistan” African Journal of Business Management Vol. 4 (3), pp. 312-319, March, 2010.
[8]
Tarika Singh, Seema Mehta and M. S. Varsha(2011),” Macroeconomic factors and stock returns: Evidence
[9]
from Taiwan” Journal of Economics and International Finance Vol. 2(4), pp.217-227, April 2011.
[10]
Hsin-Hong Kang and LIU, PING-CHIN(2008),” Comparative Studies between Financial Development Indicators and Economic Growth Relevance in India and Taiwan” International Conference on Applied Economics – ICOAE 2008
[11]
Thorsten Beck, Ross Levine(2004),” Stock markets, banks, and growth:Panel evidence” Journal of Banking & Finance 28 (2004) 423–442.
[12]
Farzad Rahimzadeh (2012),” BANKING SECTOR, STOCK MARKET AND ECONOMIC GROWTH:EVIDENCE FROM MENA COUNTRIES” INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND HUMANITY STUDIES Vol 4, No 2, 2012 ISSN: 1309-8063
[13]
Aboudou Maman Tachiwou (2010),” Stock Market Development and Economic Growth: The Case of West African Monetary Union” International Journal of Economics and Finance Vol. 2, No. 3; August 2010.
[14]
Anson Wong (2011),” Development of Financial Market and Economic Growth: Review of Hong Kong, China, Japan, The United States and The United Kingdom” International Journal of Economics and Finance Vol. 3, No. 2; May 2011.
[15]
Tichaona Zivengwa, Joseph Mashika, Fanwell K Bokosi and Tendai Makova (2011) ,” Stock Market Development and Economic Growth in Zimbabwe” International Journal of Eco-nomics and Finance Vol. 3, No. 5; October 2011.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186