Stock Market Development And Economic Growth - 819 Words

REVIEW OF LITERATURE Capasso, S (2006) in his paper â€Å"Stock market development and economic growth† stated that the development of the stock market is positively correlated with the level of economic development. It tries to study the relationship between the financial market development and economic growth. Empirically, it has always been proved that there is a positive correlation between stock market performance and economic growth, but in this work it has been tried to emphasize on the macroeconomic variable. Javed, T.M and Anwar, J (2001) in his paper â€Å"Investment barriers and stock market performance: an evidence from emerging market† states that the role of capital market is very crucial in the development of the national economy. The correlation in stock price indices as well as correlation in stock return among emerging market with the US market has increased after the financial reform B. V (2014) in his work â€Å"Impact of macroeconomic variables on stock market performance in India: - an empirical analysis† states that the study investigates the relationship between the Indian stock market performance and five macro-economic variable. The stock prices tells all the information about the expectation of the future performance of corporate firms. Singh, R in his paper â€Å"Globalization and capital market reforms: impact on the efficiency of the Indian stock market† tries to find out the effect of economic changes on the efficiency of the Indian stock market from 1991-02, theShow MoreRelatedRelationship Between Financial Development And Economic Growth Using Time Series Modeling1303 Words   |  6 PagesThis thesis explores the long run relationship between financial development and economic growth using time series modeling. For each of the four case-countries three types of Vector Autoregression (VAR) models will be developed except for the case of Serbia where only VAR related to credit institutions development will be developed since data related to stock market development indicators were unavailable to author. For the case of Croatia, Slovenia and China three separate VAR models will be appliedRead MoreImpact of Industrial Development on Nigeria Stock Market1457 Words   |  6 PagesImpact of Industrial develo pment on Nigeria stock market. The potentials of capital market in Nigeria as a catalyst to economic and industrial development cannot be over emphasized. The capital market as an internal part of a country’s financial system operates at the long end of the system to mobilize resources for long term development and growth. Basically, the capital market accelerates growth by providing ,relatively long term capital - debt and equity finance – for government and corporateRead MoreThe Long Run Causality Direction Between Financial Markets Development And Economic Growth1716 Words   |  7 Pagesthe long-run causality direction between financial markets development and economic growth in Croatia, Slovenia, Serbia and China for varying time periods using VAR models and Granger Causality methods. It also explores the interrelationships between variables using the Impulse Response Function. Financial industry consists of two main parts; debt and equity (Krugman and Obstfeld, 2009). These are also called de bt and equity markets. Credit markets which are primarily consisted of banks are assumedRead MoreChina s Economy Is Becoming The World s Second Largest Economy Behind The United States1234 Words   |  5 Pages1.1 Background Since initiating a series of economic reforms and adopting the open policy in 1978, China’s economy has experienced a spectacular growth and achieved a remarkable success over the past three decades. In particular, according to the government figures released on August 16th 2010, China’s economy in the second quarter has slightly surpassed Japan’s in terms of gross domestic product. This milestone suggests that China is becoming the world’s second-largest economy behind the UnitedRead MoreForeign Investment and Trade637 Words   |  3 Pagesis consist of foreign direct investment (FDI) and foreign portfolio investment(FPI). Both have worked as an instrument of global economic integration and stimulation. Apart of providing access to the foreign capital FDI also offers modern era technology, tools of creativity, desired skill sets and other complementary skills. In addition of producing additional economic activity and generating employment, foreign inves tment facilitates in flow of sophisticated technology. The FDI creates capacityRead MorePension Funds Case Study1499 Words   |  6 Pageseffect on the development of bond and stock markets in Latin America’s largest economies. Even though there are country-specific circumstances that may influence the magnitude of pension funds’ impact on domestic capital markets, the positive trend holds after controlling for these variables using entity fixed effects. Such positive influence on the depth of capital markets translates into greater overall financial development, which has the potential to accelerate emerging markets’ process towardsRead MoreQuestions On Economic Databases And The Government And Private Companies Have Collected Data On Inflation1490 Words   |  6 PagesRachel Piekarskie Stephen Dansky Economics Macro ECO2013 M W 8:00 AM 10 October 2015 Quiz #1- Take Home Potion- Economics Databases For many years, the government and private companies have collected data on inflation, GDP, unemployment, housing starts, interest rate, money supply and many other things. In this essay I will describe what economic databases are and how businesses, individuals, and the government use the information from the databases. The information I will use and present willRead MoreComparing the 1929 Market Crash and the Current Position in the Stock Market1038 Words   |  5 PagesComparing the 1929 Market Crash and the Current Position in the Stock Market During the 1920s, the North American economy was roaring, but this decade would eventually be put to a stop. In October of 1929, the stock market began its steepest decline to this date in history. Many stock market traders and economists believe and pray that it was a one-shot episode never to be repeated. On the other hand, many financial analysts and other economists believe that the current stock markets are in placeRead MoreThe Role of Macroeconomic Variables in the Financial Market673 Words   |  3 PagesMacroeconomic variables play a significant role in the financial market and when it is properly used it can be a precious resource for the investors and traders. By understanding the integration between the macroeconomic variables and the stock market will guide investors a long way to make better investment decision. The key objective of the study is to investigate the impact and the relationship of six selected macroeconomic variables namely, Consumer Price Index(CPI), Gros s Domestic Product(GDP)Read MoreThe Evolution of Islamic Finance and Financial Institutions697 Words   |  3 Pagestransactions in accordance with the rules and principles of Islam. One of the most growing parts of the Islamic finance is Islamic equity market. In principle, Islamic equity market is characterized by the absence of interest based transactions, doubtful transactions and unlawful stocks of companies which deal in non-shariah compliance activities or items. Its market activities must be free from any of unethical or immoral elements. The emergence of several Islamic indices such as the Dow Jones Islamic