Multi-Country Study of the Relationship Between Development of Stock Exchanges and Economic Development

By: Material type: ArticleArticleLanguage: ENG Series: ; 14Publication details: Jun 2008 0Edition: 6Description: 34-55 PpSubject(s): DDC classification:
  •  Het
Online resources: Summary: This paper focuses on examining the relationship between the economic development of a country, as represented by GDP per capita, and the development of financial markets, represented by market capitalization. Logitudinal data for 116 countries, over 18 years, has been used. Simple regression analysis, fixed and random effects models, and causality tests have been carried out to determine the model which best describes the relationship between GDP per capita and market capitalization.
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This paper focuses on examining the relationship between the economic development of a country, as represented by GDP per capita, and the development of financial markets, represented by market capitalization. Logitudinal data for 116 countries, over 18 years, has been used. Simple regression analysis, fixed and random effects models, and causality tests have been carried out to determine the model which best describes the relationship between GDP per capita and market capitalization.

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