Does the stock market cause economic growth? Portuguese evidence of economic regime change

Marques, Luís Miguel; Fuinhas, José Alberto; Marques, António Cardoso

doi:10.1016/j.econmod.2013.02.015

Cited by 102 publications

(71 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Graph (8) shows the IRF of CAP to FDI declines to be negative in the second period then it positively increases. Graph (9) shows the IRF of CAP to CAP declines to reach zero at the third period and negatively fluctuates. Noteworthy, if the system of equations is stable any shock should decline to zero or, an unstable system would produce an irregular path.…”

Section: Resultsmentioning

confidence: 99%

“…Marques, Fuinhas & Marques investigate the relationship between stock market and economic growth in Portugal through the period1993 to 2011 by using VAR model, Granger causality test and impulse responses function. They found evidence of positive causal relationship between stock market development and economic growth [9]. Cavenaile, Gengenbach & Palm investigate the long run relationship between the development of banks and stock markets and economic growth and causality direction in five countries through the period 1977 to 2007 by using Unit Root Test, Cointegration Test and Causality Test.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Stock Market Development and Economic Growth: Evidences from Egypt

Badr¹

2015

IJTEF

View full text Add to dashboard Cite

Abstract-This study investigates the causal relationship between stock market development and economic growth in Egypt. To achieve this objective, unit root tests were conducted for time series data for the period of 2002 to 2013 in their levels and their first differences according to Dickey-Fuller. Johansen co-integration analysis was conducted to examine whether the variables are co-integrated of the same order. Vector autoregression estimates (VAR) was chosen to test the long-run relationship between stock market development and economic growth. VAR Granger Causality test was applied to determine the direction of causality between the examined variables. Finally, Variance Decomposition and Impulse response function (IRF) were used for forecasting the future relationship between the study variables. The results do not indicate a causal relationship between stock market development alone and the economic growth. However, the results show a link between stock market development as well as foreign direct investment and economic growth. Therefore, it can be inferred that government should reshape and adjust the stock market and take care of FDI to support economic growth.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Stock Market Development and Economic Growth: Evidences from Egypt

Badr¹

2015

IJTEF

View full text Add to dashboard Cite

show abstract

“…see Dritsaki and Dritsaki-Bargiota, 2005;Liu and Sinclair, 2008), mutual relationship (similar as e.g. in Marques et al, 2013;or Kajurova, 2016) and no relation between variables (e. g. Harris, 1997;Fink et al, 2005;or Hagmayr et al, 2007). Fink et al (2009) or Caporale et al (2015).…”

Section: Resultsmentioning

confidence: 99%

“…Some studies find no significant influence of stock markets on growth, e. g. see Harris (1997), Fink et al (2004), Fink et al (2005), Hagmayr et al (2007), Fink et al (2009) or Caporale et al (2015). And some contributions find bidirectional, mutual causal relationship, e. g. Marques et al (2013) or Kajurova (2016). A detailed survey of literature on relationship between stock market development and growth can be found in Appendix A.…”

Section: Literature Reviewmentioning

confidence: 99%

A Note on Relationship between Economic Activity and Stock Market Development: a Case of Euro Area Countries

Kajurová

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

View full text Add to dashboard Cite

The aim of the paper is to empirically examine if the causal relationship between economic activity and stock market development exists in the selected 11 EA countries. The existence of relationship is investigated with the use of cointegration, vector error correction model and Granger causality during three sub-periods between January 1993 and January 2017. The results show that the general conclusion on the relation between activity and stock market development cannot be stated and that country-specific development should be taken into account when making decisions either from the investors' or policy makers' perspective. It also seems that the level of integration plays important role when studying the nature of relationship between variables during different time periods.

show abstract

“…He found a long-term cointegration relationship between variables, while in the short-run, there were unidirectional and bidirectional causal relations among the variables. Marques, Fuinhas& Marques (2013), investigate the relationship between stock market and economic growth in Portugal through the period1993 to 2011 by using VAR model, Granger causality test and impulse responses function. They found evidence of positive causal relationship between stock market development and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Can Stock Market Development boost Economic Growth in Developing Economies? The Case of Egypt

Badr¹

2015

JEDS

View full text Add to dashboard Cite

This study investigates the causal relationship between stock market development and economic growth in Egypt. To achieve this objective, unit root tests were conducted for time series data for the period of 2002 to 2013 in their levels and their first differences according to Dickey-Fuller test, Johansen co-integration analysis was conducted to examine whether the variables are co-integrated of the same order. Vector Auto regression Estimates (VAR) was chosen to test the long-run relationship between stock market development and economic growth. VAR Granger Causality test was applied to determine the direction of causality between the examined variables. Finally, Variance Decomposition (VD) and Impulse Response Function (IRF) were used for forecasting the future relationship between the study variables. The results do not indicate a causal relationship between stock market development alone and the economic growth. However, the results show a link between stock market development as well as foreign direct investment and economic growth. Therefore, it can be inferred that government should reshape and adjust the stock market and take care of FDI to support economic growth.

show abstract

Does the stock market cause economic growth? Portuguese evidence of economic regime change

Cited by 102 publications

References 38 publications

Stock Market Development and Economic Growth: Evidences from Egypt

Stock Market Development and Economic Growth: Evidences from Egypt

A Note on Relationship between Economic Activity and Stock Market Development: a Case of Euro Area Countries

Can Stock Market Development boost Economic Growth in Developing Economies? The Case of Egypt

Contact Info

Product

Resources

About