The Role of Stock Market Development in Economic Growth: Evidence from Some Euronext Countries
By Ake Boubakari, Dehuan Jin. 2010
143 citations recorded by the source corpus.
In this article we explore causality relationship between stock market and economic growth based on the time series data compiled from 5 Euronext countries (Belgium, France, Portugal, Netherlands and United Kingdom) for the period 1995:Q1 to 2008:Q4. Granger causality test was used to find causality relationship between stock market proxies through market capitalization, total trade value, turnover ratio and economic growth (GDP and FDI). Causal relations were investigated for each country. The results of the study suggest a positive links between the stock market and economic growth for some countries for which the stock market is liquid and highly active. However, the causality relationship is rejected for the countries in which the stock market is small and less liquid.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/8c3c531615990e630d3b5013a0ff49d5fb0d924c
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In Economics and Econometrics
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Citations in the corpus
- Does the stock market cause economic growth? Portuguese evidence of economic regime change (2013, background): “On the other hand, Boubakari and Jin (2010) concluded that stock market development is not sufficiently significant to cause economic growth.”
- Stock market development and economic growth in Africa (2014, background): “More recently , the role of stock market development in macroeconomic performance has been investigated ( see Adenuga , 2010 ; Boubakari & Jin , 2010 ; Carp , 2012 ; Enisan & Olufisayo , 2009 ; King & Levine , 1993 ; Levine , 2004 ; Levine & Zervos , 1998 ) .”