helps to understand that how the stock market play its role in the economic growth of the country. The extensive literature shows the importance of stock market countries. Nevertheless, there exists very little empirical evidence on the importance of stock market development to economic growth and almost none exists Effects of Stock Market Development on Economic Growth in Nepal. Krishna Many analysts view stock market in development countries as "casinos" that have little banking sector plays a key role for economic growth compared to capital. Nowadays it hears more about the financial market, the stock market, about In some countries financial markets are still in a developing process, but in other to investigate if the financial market plays a role in the economic and social life. Lee (2012) through different sample time period for individual country revealed the substantial role of stock market in financing the economic growth in the US,
Stock exchanges play a vital role in the functioning of the economy by providing the backbone to a modern nation's economic infrastructure. Stock exchanges In countries around the world, stock exchanges are being used to help businesses raise capital and give investors opportunities to back new and established 13 Jan 2018 Stock markets play a major role in the development of economies, whether it is in Pakistan or any other country of the world. growth in that country during the entire event study period of 1981 to 2001. stated as follows: the stock market serves significant economic functions even in
text of the cross-country relationship between stock market development arld growth, for example, the presence of endogeneity has been shown to considerably weaken the estimated effect of stock market indicators (Harris 1997). There are, therefore, important econometric advantages in examining the role of stock markets
countries. Nevertheless, there exists very little empirical evidence on the importance of stock market development to economic growth and almost none exists
It is no wonder, that the World Bank Economic Review dedicated its May 1996 issue to the role of the stock market in economic growth. The stock market also known as the stock exchange or equity market performs some functions that promote the growth of the economy (Osinubi, 2004). The Role of Stock Exchanges in Fostering Economic Growth and Sustainable Development 5 Executive Summary This exploratory report by the World Federation of Exchanges (WFE) and the United Nations Con-ference on Trade and Development (UNCTAD) ex-amines the role of stock exchanges 3 in promoting economic growth and sustainable development. development and economic growth, while section II describes the Euronext stock market and section III provides an econometric assessment for the role of Euronext stock markets in economic growth during the period 1995-2008. Causal relations were investigated for each country. The results of the study suggest a positive links between the stock market and economic growth for some countries for which the stock market is liquid and highly active. However, the causality relationship is rejected for the countries in which the stock market is small and less liquid.