Stock Market Development and Economic Growth: A Panel Data Approach

Shao-Chi Chang

《Asia Pacific Management Review》 6卷3期 (2001/09) Pp. 357-376

並列摘要

We use the panel data approach with fixed effects to differentiate the long-run rate from short-run level effects of stock market development on economic growth against a sample of 70 countries over the period 1975-1992. The empirical evidence indicates that development of stock markets has significant positive effects on both the long-run growth rate and short-run level of real GDP per capita. Furthermore, we find that the influence of stock markets is mainly through the channel of productivity improvement, rather than capital formation, Physical capital per se only enhances the short-run level of economic development, but has no effect on the long-run growth rate. Finally, the results suggest that stock markets have a stronger impact on growth rate for low-income countries. The conclusions appear to be independent of bias associated with omitted variables and simultaneity between stock markets and economic growth.

並列關鍵字

Economic Growth ； Stock Market ； Panel Data

參考文獻

Admati, A. R., Pfleiderer, P.(1988).A Theory of Intraday Patterns: Volume and Price Variability.The Review of Financial Studies.1

Allen, F., Gale, D.(1996).A Welfare Comparison of Intermediaries and Financial Markets in Germany and US.European Economic Review.39

Amemiya, T.(1967).Technological Report, 4.Institute for mathematical Studies in Social Sciences: Stanford University.

Barro, R. J.(1990).Government Spending in a Simple Model of Endogenous Growth.Journal of Political Economy.98(5)

Barro, R. J.(1991).Economic Growth in A Cross Section of Countries.Quarterly Journal of Economics.106