Do Stock Markets Promote Economic Growth?

Jan Hanousek, Nauro Campos and Randall Filer

Finance from University Library of Munich, Germany

Abstract: One of the most enduring debates in economics is whether financial development causes economic growth or whether it is a consequence of increased economic activity. Little research into this question, however has used a true causality framework. This paper fills this lacuna by using Granger-causality tests to provide evidence of a positive and significant causal relationship going from stock market development to economic growth, particularly for less developed countries.

Keywords: Stock market; Financial development; Economic growth; Granger causality (search for similar items in EconPapers)
JEL-codes: F36 G00 G14 O16 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2001-02-16
New Economics Papers: this item is included in nep-dev and nep-fmk
Note: Type of Document - Acrobat PDF; pages: 21 ; figures: included
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https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0012/0012006.pdf (application/pdf)

Related works:
Working Paper: Do Stock Markets Promote Economic Growth? (1999)
Working Paper: Do Stock Markets Promote Economic Growth (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0012006

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