Financial Development and Economic Growth: The Role of Stock Markets

Utilizing time series methods and data from five developed economies, we examine the relationship between stock market development and economic growth, controlling for the effects of the banking system and stock market volatility. Our results support the view that, although both banks and stock mark...

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Bibliographic Details
Published inJournal of money, credit and banking Vol. 33; no. 1; pp. 16 - 41
Main Authors Arestis, Philip, Demetriades, Panicos O., Luintel, Kul B.
Format Journal Article
LanguageEnglish
Published Columbus Ohio State University Press 01.02.2001
John Wiley & Sons, Inc
Subjects
Bank markets
Bank stocks
Banking
Banks
Correlation analysis
Data analysis
Development banks
Economic growth
Financial development
Financial economics
Growth stocks
Long run economic growth
Manycountries
Market development
P values
Regression analysis
Securities markets
Stock exchange
Stock exchanges
Stock markets
Studies
Systems development
United Kingdom > UK
France
United States > US
Japan
Germany
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Summary:Utilizing time series methods and data from five developed economies, we examine the relationship between stock market development and economic growth, controlling for the effects of the banking system and stock market volatility. Our results support the view that, although both banks and stock markets may be able to promote economic growth, the effects of the former are more powerful. They also suggest that the contribution of stock markets on economic growth may have been exaggerated by studies that utilize cross-country growth regressions.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0022-2879
1538-4616
DOI:10.2307/2673870