THE EFFECT OF MACROECONOMIC & MARKET SPECIFIC DYNAMICS ON STOCK MARKET DEVELOPMENT IN GLOBAL GROWTH GENERATOR COUNTRIES
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 9
Abstract
As the global financial crisis dethrones the developed world from its economic supremacy, by leading the global economic recovery and growth, the global growth generator (3G) countries are expected to fill the vacuum. Capital market i.e. stock market development can play a crucial role in augmenting such growth in these 3G countries. This study aims at augmenting the determinants of stock market development in the 3G countries so that policy makers can be aided for developing a functioning and stable stock market. Using panel ARDL model for 8 (eight) out of 11(eleven) 3G countries over a period of 1980-2011, the study confirms that several macroeconomics i.e. foreign direct investment, real interest rate and stock market operating characteristics have a significant long run contribution to the development of stock market and thereupon a sustained economic growth.
Authors and Affiliations
Md. Al-Mamun| Assistant Professor in Finance in the Department of Business Administration at East West University
Keywords
Related Articles
- EP ID EP1951
- DOI -
- Views 447
- Downloads 27
U.S.-SINGAPORE COMMODITY TRADE AND THE J-CURVE
Limited number of studies that investigated the short-run (J-Curve) and long-run effects of currency depreciation on the trade balance of Singapore either used aggregate trade data between Singapore and rest of the world...
THE POWER OF A LEADING INDICATOR’S FLUCTUATION TREND FOR FORECASTING TAIWAN'S REAL ESTATE BUSINESS CYCLE: AN APPLICATION OF A HIDDEN MARKOV MODEL
This paper employ the discrete hidden Markov model (HMM) in order to capture information about the Markov switching model?s inner states that is not directly observable, and to pre-detect the real estate business cycle?s...
Return-Volatility Interactions in the Nigerian Stock Market
The study employed the GARCH (1, 1) and VAR models to ascertain the relationship between volatilities in the monetary policy variables and volatilities in the stock market returns in Nigeria between 1980 and 2010.The stu...
EMPIRICAL TESTING OF EXCHANGE RATE AND INTEREST RATE TRANSMISSION CHANNELS IN CHINA
This paper examines the exchange rate and interest rate volatility transmission channels in China by applying Granger causality, Johansen cointegration, and the VAR model. Empirical results taken from the exchange rate c...
SV MIXTURE, CLASSIFICATION USING EM ALGORITHM
The present paper presents a theoretical extension of our earlier work entitled“A comparative study of two models SV with MCMC algorithm” cited, Rev Quant Finan Acc (2012) 38:479-493 DOI 10.1007/s11156-011-0236-1 where w...