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Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore

Received: 30 April 2014     Accepted: 29 May 2014     Published: 10 June 2014
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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.

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 3)
DOI 10.11648/j.ijefm.20140203.13
Page(s) 220-226
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

GDP Per Capita, FDI, Investments, EXP and GDS

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.
Cite This Article
  • APA Style

    Muhammad Aamir Ali, Nazish Aamir. (2014). Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore. International Journal of Economics, Finance and Management Sciences, 2(3), 220-226. https://doi.org/10.11648/j.ijefm.20140203.13

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    ACS Style

    Muhammad Aamir Ali; Nazish Aamir. Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore. Int. J. Econ. Finance Manag. Sci. 2014, 2(3), 220-226. doi: 10.11648/j.ijefm.20140203.13

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    AMA Style

    Muhammad Aamir Ali, Nazish Aamir. Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore. Int J Econ Finance Manag Sci. 2014;2(3):220-226. doi: 10.11648/j.ijefm.20140203.13

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  • @article{10.11648/j.ijefm.20140203.13,
      author = {Muhammad Aamir Ali and Nazish Aamir},
      title = {Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {2},
      number = {3},
      pages = {220-226},
      doi = {10.11648/j.ijefm.20140203.13},
      url = {https://doi.org/10.11648/j.ijefm.20140203.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140203.13},
      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.},
     year = {2014}
    }
    

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    T1  - Stock Market Development and Economic Growth: Evidence from India, Pakistan, China, Malaysia and Singapore
    AU  - Muhammad Aamir Ali
    AU  - Nazish Aamir
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    JF  - International Journal of Economics, Finance and Management Sciences
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    AB  - 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.
    VL  - 2
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Author Information
  • School of Commerce and Accountancy, University of Management and Technology, Lahore, Pakistan

  • School of Commerce, University of Central Punjab, Lahore, Pakistan

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