Economic Prospects of Stock Market Development: A Comparison of Two Worlds.

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From: Paradigms(Vol. 13, Issue 1)
Publisher: University of Central Punjab
Document Type: Article
Length: 6,418 words
Lexile Measure: 1560L

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Abstract :

The stock market is a crucial component of the financial system of any economy. This study proceeds with dynamic panel data investigation of the effect of development in the stock market on economic progress. The changes in the stock market are estimated using the market capitalization and stock value traded indicators. Based on the Fully Modified Ordinary Least Squares (FMOLS) estimates on selected economies, it is evident that stock value traded had a significant positive effect on the economic progress of both developed and developing economies. While market capitalization had a significant negative effect on the developed economies only. Finally, the study suggests that policymakers may design policies that enhance stock value traded. Keywords: Stock Market, Economic Progress, Dynamic Panel Data Analysis. JEL Classification: G0

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Gale Document Number: GALE|A603360463