Skip to main content

Research Repository

Advanced Search

Endogenous growth models and stock market development: Evidence from four countries

Caporale, Guglielmo Maria; Howells, Peter; Soliman, Alaa M.

Authors

Guglielmo Maria Caporale

Peter Howells

Alaa M. Soliman



Abstract

This paper re-examines the relationship between stock market development and economic growth. It provides a theoretical basis for establishing the channel through which stock markets affect economic growth in the long run. It examines the hypothesis of endogenous growth models that financial development causes higher growth through its influence on the level of investment and its productivity. The empirical part of this study exploits techniques recently developed to test for causality in VARs. The evidence obtained from a sample of four countries suggests that investment productivity is the channel through which stock market development enhances the growth rate in the long run. © Blackwell Publishing Ltd 2005.

Citation

Caporale, G. M., Howells, P., & Soliman, A. M. (2005). Endogenous growth models and stock market development: Evidence from four countries. Review of Development Economics, 9(2), 166-176. https://doi.org/10.1111/j.1467-9361.2005.00270.x

Journal Article Type Article
Publication Date May 1, 2005
Journal Review of Development Economics
Print ISSN 1363-6669
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 9
Issue 2
Pages 166-176
DOI https://doi.org/10.1111/j.1467-9361.2005.00270.x
Keywords endogenous growth models, stock market development
Public URL https://uwe-repository.worktribe.com/output/1049773
Publisher URL http://dx.doi.org/10.1111/j.1467-9361.2005.00270.x




Downloadable Citations