Econometrics of the Effects of Stock Market Development on Growth and Private Investment in Lower Income Countries

Topics:
Equity
Tags:
Equity,
Finance,
Financial Services,
Income,
Investment,
Stock,
Stock Market
Source:
University of Oxford

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Overview: Recent literature suggests that stock market liberalization has positive effects on macroeconomic growth and private investment. Evidence in this study indicates that stock market development has a more positive impact on growth for greater levels of per capita GDP. Similarly, lagged equity price appreciation seems to boost private investment growth, but only in rich countries. Curiously, neither financial nor legal development variables, which are more serviceably relevant than initial income, seem to be mitigating factors, but these data imply subdued enthusiasm regarding emerging equity market development.

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Format: PDF | Size: 165KB | Date: Oct 2000 | Pages: 42


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