Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.]
The study aims to evaluate the causality linkage between stock market development (SMD) and growth of the economy in Bangladesh. Using time series data of quarterly frequency through 2000Q1-2017Q4 and employing the Johansen cointegration approach the study reveals that there are long-run co-inte...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam
2018
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/30304/ |
| _version_ | 1848807461267439616 |
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| author | Mamun, Abdullahil Basher, Shahanara Hoque, Nazamul Ali, Md Hasmat (Dr.) |
| author_facet | Mamun, Abdullahil Basher, Shahanara Hoque, Nazamul Ali, Md Hasmat (Dr.) |
| author_sort | Mamun, Abdullahil |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | The study aims to evaluate the causality linkage between stock market development (SMD) and growth of the economy in Bangladesh. Using time series data of quarterly frequency through 2000Q1-2017Q4 and employing the Johansen cointegration approach the study reveals that there are long-run co-integrating relationships among the variables, namely, GDP, development of the stock market, net interest spread, real effective exchange rate and financial depth. The Vector Error Correction Model (VECM) confirms the presence of a long-term equilibrium relationship between GDP and other variables such as regressors as the system is found to be stable in the long-run. As revealed from the study, the short run positive impact of SMD on the growth of the Bangladesh economy sustains in the long run, which is also true for financial depth. However, financial deepening has a relatively large contribution to the output growth of Bangladesh than SMD. Granger causality tests assert that the causal association is unidirectional that runs from SMD to output growth. |
| first_indexed | 2025-11-14T22:43:11Z |
| format | Article |
| id | uitm-30304 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:43:11Z |
| publishDate | 2018 |
| publisher | Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-303042022-06-15T02:26:48Z https://ir.uitm.edu.my/id/eprint/30304/ Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] mar Mamun, Abdullahil Basher, Shahanara Hoque, Nazamul Ali, Md Hasmat (Dr.) Mathematical economics. Quantitative methods Industrial sociology. Social conditions of labor The study aims to evaluate the causality linkage between stock market development (SMD) and growth of the economy in Bangladesh. Using time series data of quarterly frequency through 2000Q1-2017Q4 and employing the Johansen cointegration approach the study reveals that there are long-run co-integrating relationships among the variables, namely, GDP, development of the stock market, net interest spread, real effective exchange rate and financial depth. The Vector Error Correction Model (VECM) confirms the presence of a long-term equilibrium relationship between GDP and other variables such as regressors as the system is found to be stable in the long-run. As revealed from the study, the short run positive impact of SMD on the growth of the Bangladesh economy sustains in the long run, which is also true for financial depth. However, financial deepening has a relatively large contribution to the output growth of Bangladesh than SMD. Granger causality tests assert that the causal association is unidirectional that runs from SMD to output growth. Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam 2018-04 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/30304/1/30304.pdf Mamun, Abdullahil and Basher, Shahanara and Hoque, Nazamul and Ali, Md Hasmat (Dr.) (2018) Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.]. (2018) Management & Accounting Review (MAR) <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review_=28MAR=29.html>, 17 (1): 7. pp. 123-144. ISSN 2550-1895 |
| spellingShingle | Mathematical economics. Quantitative methods Industrial sociology. Social conditions of labor Mamun, Abdullahil Basher, Shahanara Hoque, Nazamul Ali, Md Hasmat (Dr.) Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] |
| title | Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] |
| title_full | Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] |
| title_fullStr | Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] |
| title_full_unstemmed | Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] |
| title_short | Does stock market development affect economic growth? Econometric evidence from Bangladesh / Abdullahil Mamun ... [et al.] |
| title_sort | does stock market development affect economic growth? econometric evidence from bangladesh / abdullahil mamun ... [et al.] |
| topic | Mathematical economics. Quantitative methods Industrial sociology. Social conditions of labor |
| url | https://ir.uitm.edu.my/id/eprint/30304/ |