Contribution of StockMarket Towards Economic Growth: An Empirical Study on Bangladesh Economy

2017 ◽  
Vol 13 (4) ◽  
pp. 238 ◽  
Author(s):  
Sonia Rezina ◽  
Nusrat Jahan ◽  
Mohitul Ameen Ahmed Mustafi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Market Performance ◽  
Unit Root Test ◽  
Causality Test ◽  
Stock Market Development ◽  
Stock Market Performance ◽  
Augmented Dickey Fuller ◽  
Johansen Cointegration Test ◽  
The Impact

The economic growth of a country is influenced by many different factors. This study aims to investigate the causal relationship between stock market development and economic growth in Bangladesh as well as the impact of stock market performance upon the economic growth of Bangladesh. The stock market performance has been measured by market capitalization ratio, number of listed companies, total value traded and turnover ratio; and the economic growth was represented by real gross domestic product. The periods taken for study were from year 1994 to year 2015.The effect of the stock market reform will also be addressed to explain the relationship. The study has been conducted using Augmented Dickey- Fuller Unit Root Test, Johansen Cointegration Test and the Granger Causality Test. The findings of the research should help the policy makers and regulators to look after their interest in the financial sector of the country.

scholarly journals Macro-Economic Variables and Stock Market: are they Co-integrated? - A Study on NSE India

2021 ◽  
Vol 9 (2) ◽  
pp. 25-30
Author(s):  
Aditya Prasad Sahoo
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Unit Root ◽  
Real Interest Rate ◽  
Market Performance ◽  
Unit Root Test ◽  
Crude Oil Price ◽  
Price Inflation ◽  
Stock Market Performance ◽  
Integration Test

The stock market acts as a barometer for the economy. Stock Market Performance and Economic Growth go in hand in hand in the case of the Indian economy. While considering Indian economic growth, the stock market performance plays an essential role. The period of study ranges from 2000 to 2017. The tools used for the study are the ADF unit root test and Johansen co-integration test. The study concludes that Gross domestic product, FDI, Crude oil price, Inflation and Real interest rate have a significant relationship with the NSE stock market for the study period.

Analysis of Stock Market Development, Foreign Private Investment and Economic Growth in Nigeria

2018 ◽  
Vol 10 (1-2) ◽  
pp. 1-17
Author(s):  
Onyinye I. Anthony-Orji ◽  
Anthony Orji ◽  
Jonathan E. Ogbuabor
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Private Investment ◽  
Least Square ◽  
Market Development ◽  
Stock Market Development ◽  
Long Run ◽  
Stock Market Performance ◽  
Foreign Private Investment ◽  
The Impact

The study estimated the impact of stock market development and foreign private investment on economic growth in Nigeria over the period of 1985–2016, using secondary data from various publications of the Central Bank of Nigeria. The ordinary least square (OLS) technique was employed in this study, while the Engel and Granger co-integration approach was applied to determine the long-run relationship between the variables. The result showed that market capitalisation, all share index and real exchange rate have statistically significant impact on economic growth, while foreign direct investment, trade openness and gross national savings have insignificant impact on growth. The study also showed that there is a long-run relationship among stock market development, foreign private investment and economic growth in Nigeria. The error correction model (ECM) results showed that the model adjusts to equilibrium in the short run and that about 51 per cent of the disequilibrium between gross domestic product and the independent variables is corrected each year. The study recommended that policymakers and monetary authorities should gear efforts towards formulating policies that will fine-tune stock market performance and reduce issues, such as, unpaid dividends, delay in dividend payments and unhealthy transfer of stocks. This is pertinent to encourage greater population of the citizenry to invest in the stock market. Finally, the study concluded that provision and improvement of infrastructure and power as well as enforcement of investor-friendly policies by the government is needed as these will encourage the establishment of more firms and industries that will participate in the stock market, thereby contributing to the growth of the economy. JEL Classification: E22, F21, F43, O16

Stock market development: a reflection of governance regulatory framework in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fisayo Fagbemi ◽  
Opeoluwa Adeniyi Adeosun ◽  
Kehinde Mary Bello
Keyword(s):  
Stock Market ◽  
Institutional Environment ◽  
Market Performance ◽  
Market Development ◽  
Limited Attention ◽  
Content Type ◽  
Stock Market Development ◽  
Regulatory Quality ◽  
Stock Market Performance ◽  
The Impact

PurposeThe article examines the possible long-run and short-run impact of regulatory quality on stock market performance in Nigeria for 1996–2019 period.Design/methodology/approachThe study adopts autoregressive distributed lag (ARDL) bounds test and cointegrating regression techniques.FindingsFindings reveal that regulatory quality positively and significantly influences the performance of stock market, which strengthens the view that market-enhancing governance can engender an improvement in stock market performance. The study further demonstrates that quality of the regulatory environment is a critical component of market operations, since the improvement of the operation of stock market performance depends on appropriate policy measures, which could be the outcome of improved governance.Practical implicationsIt is suggested that, while improving the institutional environment is a challenge to regulators, there is need for strong and effective regulatory mechanism to enhance the development of stock market in the country.Originality/valueBased on the two competing hypotheses and limited attention, previous studies accorded the role of regulatory quality in the performance of stock market in the context of Nigeria. This study assessed the gap in the literature by taking the task of validating the impact of regulatory quality on stock market development.

scholarly journals The Impact of the Covid-19 epidemic on Saudi stock market performance using a Regression model and Granger causality test-Empirical Analysis

2021 ◽  
Vol 13 (1) ◽  
pp. 22
Author(s):  
Dr.Kavita Panjwani ◽  
Mohammad Arif Riaz
Keyword(s):  
Stock Market ◽  
Regression Model ◽  
Granger Causality ◽  
Time Series Data ◽  
Market Performance ◽  
Granger Causality Test ◽  
Series Data ◽  
Causality Test ◽  
Stock Market Performance ◽  
The Impact

The objective of the study to investigates the impact of COVID-19 epidemic on Saudi stock market performance by using regression model and pairwise granger causality tests. The time series data has been taken for this study from 01 March 2020 to 6 Dec 2020. Coronavirus has been measured in terms of cumulative new corona cases per million, new corona deaths per million, total corona cases per million and total corona deaths per million, whereas stock market return is evaluated in terms of stock market index. The study’s finding reveal that Saudi stock market significance affected by COVID-19. The study also depicts that unidirectional and bidirectional relationship between corona-virus cases and Saudi stock market with the help of granger causality test. We also highlight the main the preventive policies taken by governments related to COVID-19 have affected the stock market.

scholarly journals Causality between Macroeconomic Indicators and Stock Market: An Econometric Analysis

2021 ◽  
Vol 4 (1) ◽  
pp. 137-155
Author(s):  
Muhammad Imad ud Din Akbar ◽  
Abdul Rauf Butt ◽  
Ali Farhan Chaudhry
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Emerging Economies ◽  
Stock Exchange ◽  
Market Performance ◽  
Simultaneous Equations ◽  
Stock Market Performance ◽  
Macroeconomic Indicators ◽  
The Impact

We attempt to examine the causality between economic growth and stock market performance of Pakistan for the years 1992M01-2012M12. For this purpose, the test devised by Granger (1988) has been employed. The results reveal a bi-directional causality between economic growth and stock market performance of Pakistan proxied by Karachi Stock Exchange capitalization (KSECAP). Once this bidirectional causality is established, a system of simultaneous equations has been specified and estimated by 2SLS to find the impact of economic growth and selected macroeconomic indicators on the stock market of Pakistan. The estimated results lead to the conclusion that economic growth affects the stock market of Pakistan and vice versa. The implications of the study are of paramount importance, especially for the emerging economies. Hence, bearing in mind the role of macroeconomic indicators in the performance of stock market a better policy can be formulated to enhance the growth of capital markets that in turn will increase the economic growth of emerging economies such as Pakistan and vice versa.

scholarly journals Stock Market Development and Economic Growth in Bangladesh: An Empirical Appraisal

2019 ◽  
pp. 252-258
Author(s):  
Md. Shakhaowat Hossin ◽  
Md. Shafiul Islam
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Policy Formulation ◽  
Market Development ◽  
Test Results ◽  
Causality Test ◽  
Stock Market Development ◽  
Long Run ◽  
Integration Test ◽  
The Impact

This article seeks to examine the impact of the Bangladesh’s stock market development on its economic growth from the period of 1989-2012. We have used Johansen Cointegration test to estimate the long-run equilibrium relationship between the variables and the Granger causality test was conducted in order to establish causal relationship, while the model was estimated using the error correction model (ECM). Johansen co-integration test results show that the Bangladesh’s stock market development and economic growth are co-integrated. This indicates that a long run relationship exists between stock market development and economic growth in Bangladesh. The causality test results suggest a unidirectional causality from stock market development to the economic growth. On the other hand, there is no “reverse causation” from economic growth to stock market development. The evidence from this study reveals that the activities in the stock market tend to impact positively on the economy. It is recommended therefore that stock market regulatory authority should therefore address policy issues that are capable of boosting the investors’ confidence through improved policy formulation and creation of awareness.

scholarly journals Impact of Khartoum Stock Exchange Market Performance on Economic Growth: An Autoregressive Distributed Lag ARDL Bounds Testing Model

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 86
Author(s):  
Tomader Elhassan ◽  
Bakhita Braima
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Exchange Market ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Stock Market Performance ◽  
The Impact

This study examines the impact of the Khartoum Stock Exchange market performance on economic growth in Sudan from Q1 1995 to Q4 2018. The data were collected from the Central Bank of Sudan (CBS) and Khartoum Stock Exchange (KSE). The autoregressive distributed lag (ARDL) bounds test was applied to estimate the impact of the Khartoum Stock Exchange market performance on economic growth. The results show that the Khartoum Stock Exchange market performance has a limited impact on economic growth. The results of the ARDL test reveal that the speed of adjustment towards long-run equilibrium after a short-term shock, which confirms the stability of Sudanese economic system through stock market performance, equals 24% only. Although market capitalization has a positive and significant impact on economic growth in the long term, the turnover ratio and stocks traded value showed insignificant negative impacts on economic growth. We recommend that suitable investment policies should be developed by policy makers for the Sudanese economy to allow the Khartoum securities market to attract foreign investors and encourage local investors in order to improve the efficiency and effectiveness of the stock market, thus, leading to a boost in securities exchanges as well as economic growth.

Do Petroleum Product Pump Prices Influence Economic Growth in Nigeria? An Empirical Analysis

2021 ◽  
Vol 8 (1) ◽  
pp. 25-35
Author(s):  
Jude Chukwunyere Iwuoha ◽  
Florence Chigozirim Awoke ◽  
Chiwuike Ubah
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Secondary Data ◽  
Price Adjustment ◽  
National Bureau ◽  
Causality Test ◽  
Fuel Pump ◽  
Price Adjustments ◽  
Johansen Cointegration Test ◽  
The Impact

This study examined the impact of fuel pump price adjustment and the causal relationship between fuel pump price adjustments and economic growth in Nigeria using secondary data extracted from the Central Bank of Nigeria annual report and National Bureau of Statistics publications spanning from 1980 - 2019. Descriptive statistics, unit root test, Johansen cointegration test, VECM and Granger causality test were employed to analyse the data. The result showed that a 1% increase in the prices of PMS and AGO increased economic growth by 0.014%, 0.038% and 0.018% respectively while AGO is reduced by 0.002%. Also the prices of PMS, AGO and DPK does not granger cause economic growth in Nigeria within the period under this study meaning that any macroeconomic policy that affects economic growth should be pursued independent of fuel pump prices as any policy aimed at influencing economic growth through pump price adjustments seems to be ineffective.

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