Stock Returns and Output Growth in Emerging and Advanced Economies

By Paolo Mauro. Social Science Research Network, 2000

178 citations recorded by the source corpus.

This paper studies the correlation between output growth and lagged stock returns in a panel of emerging market economies and advanced economies. It finds that the correlation is as strong in emerging market economies as in advanced economies. Asset prices therefore contain valuable information to forecast output also in emerging market economies. Moreover, the paper finds that the strength of the correlation between output growth and lagged stock returns is significantly related to a number of stock market characteristics, such as the number of listed domestic companies and initial public offerings and, especially, a high market capitalization to GDP ratio and English legal origin.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d942a94112085dddb2b9f8c4d6fbc0b5a8454fff

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Danson Kimani
2. Ake Boubakari
3. T. Olweny
4. Dehuan Jin

In Economics and Econometrics

1. Danson Kimani
2. Ake Boubakari
3. T. Olweny
4. Dehuan Jin

In Finance

1. Danson Kimani
2. Ake Boubakari
3. T. Olweny
4. Dehuan Jin

Citations in the corpus

• The Role of Stock Market Development in Economic Growth: Evidence from Some Euronext Countries (2010, background): “The results corroborate with existing empirical works (Levine 1997, Mauro 2000, De Gregorio and Guidotti 1995, G.RSOY, C. T., Al-Aali, H. 2000).”
• Stock market performance and economic growth Empirical Evidence from Kenya using Causality Test Approach (2011, background): “Mauro [43] demonstrates that stock market is a stable predetermining factor of economic growth in emerging economies.”