The Effect of Macroeconomic & Market Specific Dynamics on Stock Market Development in Global Growth Generator Countries
نویسنده
چکیده
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.
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