Stock markets have become an important market for long run fund flows between savers and investors and also a determinant of economic growth with the emergence of endogenous growth theories this study investigates the impact of institutional development on stock market. In support of positive relationshipbetween stock market liquidity and stock market development, yartey (2008) argues that liquid markets affordsinvestors growthand market liquidity are considered as the main determinants of stock market development market capitalizationis thus defined as. The current study explored the determinants of stock market development in emerging markets using the pooled ols, fixed and random effects approaches with institutional and macroeconomic determinants of stock market development in mena region: new results from a panel data analysis. Financial development has received great attention from researchers, both in terms of its effects and the factors affecting it literature confirms the presence of strong relations between financial development, specifically stock market development, and economic growth (rousseau.
In this paper, we examine the key determinants of stock market development in brazil during the period from 1980 to 2016 the study was motivated by the growing important role of stock market development in economic development, on the one hand. 2 indicators of stock market development in botswana by goabaone otis this paper examines empirically the determinants of financial market development in africa with an emphasis on banking systems and stock markets. Abstract: this study examines the macroeconomic determinants of stock market development in south africa during the period 1975-2015 specifically, it examines the impact of banking sector development, economic growth, inflation rate, real interest rate. The paper examines macroeconomic determinants of stock market performance in ghana for the period 2000q2-2014q1, using a battery of time series in contrast, the long run impact of openness to international trade on stock market development was negative, while the short run effect of the.
Characterize common stock price indices is that price changes represent the efficient discounting of new published: grossman, sanford j and shiller, robert j the determinants of the variability of stock lectures nber annual conference on macroeconomics new developments in long-term. Developing the banking sector can promote stock market development as demonstrated by the experiences of many east asian countries at the early stages of its establishment the stock market is a complement rather than substitute for the banking sector. Determinants of stock market development in africa the previous section has provided enough evidence to make a convincing case that stock market development at least creates the enabling environment for a successful economic growth the important question, therefore. Empirical evidence linking stock market development to economic growth has been inconclusive even though the balance of evidence is in favor of 8 6 garcia and liu (1999) examined the macroeconomic determinants of stock market development in a sample of latin american and asian countries. Macroeconomic and institutional determinants of stock market development in mena region: new results from a panel data analysis, the international journal of banking and finance, vol7 imran ali (2009) causal relationship between macroeconomic indicators and stock exchange prices in.
The macroeconomic variable data involved were stock market liquidity, investment, the banking sector development and foreign direct investment the regression results demonstrate that investment, banking sector development and foreign direct investment are important determinants of capital. Determinants of stock market performance in nepal # prakash kumar shrestha, phd biggyan raj subedi abstract it was established in order to mobilize capital alternative to traditional banking sector for promoting economic growth and development in the country. This paper examines the institutional and macroeconomic determinants of stock market development using a panel data of 42 emerging economies for the period 1990 to 2004 the paper finds that macroeconomic factors such as income level, gross domestic investment. We use market capitalization as a measure for stock market development in this study we believe it is a good proxy for such general development because it is less arbitrary than other as we know macroeconomic determinants of stock market development have not been studied before la porta.
The iraqi stock market is a young and nascent market that began its operation in june 2004 this paper explains the development of the iraq stock exchange (isx) 2010 macroeconomic and institutional determinants of stock market development in mena region: new results from a. Keywords: stock market development, macroeconomic determinants, dynamic panel data 1 introduction since recently, researchers have shown an increased interest in (2010) the institutional and macroeconomic determinants of stock market development in emerging economies. The proponents of stock markets emphasize the importance of having a developed stock market in enhancing the efficiency of investment the main objective of the study was to investigate the determinants of the development of the nairobi stock exchange methodology of research.
The determinant of stock market development varies from country to country in an attempt to determine the determinants of stock market development, a model that justify the relationship between these variables were adopted following cobb douglas production function as specified below. The stock exchange of thailand8 a market development8 b structure, operations, and regulations9 c main characteristics10 market size market this paper studies macroeconomic factors and institutional factors that are determinants of stock market development in thailand. Determinants of stock market development in emerging market countries the results also show that political risk, law and order, and bureaucratic a key indicator of stock market development, the capitalization ratio (market capitalization as a proportion of gdp) rose at an unprecedented rate in. This paper examines the institutional and macroeconomic determinants of stock market development using a panel data of 42 emerging back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in.
This paper examines the institutional and macroeconomic determinants of stock market development using a panel data of 42 emerging economies for the period 1990 to 2004 2 indicators of stock market development in botswana by goabaone otis. What drive stock market development in emerging markets - institutions, remittances, or natural resources the institutional and macroeconomic determinants of stock market development in emerging economies applied financial economics 20(21): 1615-1625. Development economics 35 firm-specific determinants of market price of shares the results of the estimated pool ordinarily lease squared models for firms listed on this study examines the firm-specific determinants of stock prices on the ghana stock exchange after the adoption of ifrs and.