Linking the missing market: The effect of bond markets on economic growth

Thumrongvit, Patara; Kim, Yoonbai; Pyun, Chong Soo

doi:10.1016/j.iref.2013.01.008

Cited by 63 publications

(53 citation statements)

References 24 publications

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“…As shown by the net positive effect result, this means an increase in the size of the stock market leads to better economic performance. The result is consistent with past studies (Levine & Zervos, 1998;Choong et al, 2010;Thumrongvit et al, 2013;Ngare et al, 2014). Based on the World Bank Report, the average value of Malaysian stock market capitalization as a percentage of GDP from 1988 to 2012 is 156.37 percent.…”

Section: A Spur To the Country's Economic Growth 59supporting

confidence: 91%

“…Previous studies provide evidence on the relationship between financial markets and economic growth (Levine & Zervos, 1998;Arestis, Demetriades, & Luintel, 2001;Enisan & Olufisayo, 2009;Azman-Saini et al, 2010;Choong et al, 2010;Thumrongvit et al, 2013;Ngare et al, 2014;Bayar, Kaya, & Yildirim, 2014). They show that a country's economic activities are significantly influenced by the development of the banking sector, the bond market and the stock market.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Adopting a panel data methodology, Thumrongvit et al (2013) studied the impact of stock market and bond market on economic growth. The data for their study consist of data from 38 developed and developing countries over the period of 1989 to 2010.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Even though there are studies that show the negative effects of capital market on economic growth (Calvo, 1998;Reisen & Sato, 2001), many studies provide empirical evidence on its contribution towards economic growth (Levine & Zervos, 1998;Enisan & Olufisayo, 2009;Azman-Saini, Law, & Ahmad, 2010;Choong, Baharumshah, Yusop, & Habibullah, 2010;Thumrongvit, Kim, & Pyun, 2013;Ngare, Nyamongo, & Misati, 2014).…”

mentioning

confidence: 99%

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Malaysian Stock Market: A Spur to the Country’s Economic Growth

Nordin¹,

Nordin²,

Shahimi³

2016

CUBR

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This study empirically investigates the impact of stock market on Malaysian economic growth using a vector autoregressive (VAR) estimation technique and impulse response function (IRF) over the period of 1988 through 2012. The study is motivated by empirical findings that a well-functioning stock market plays an important role in enhancing economic growth in the developed countries. We find that Malaysian stock market exhibits a positive impact on economic growth. However, we find that the positive impact lasts only for a short period. Specifically, the effect only appears in the first year after the change in market size occurs. In the second year, the effect then starts to alleviate and completely diminishes after several years. The findings provide clear implications that the positive impact of stock market size changes should be fully utilized immediately once it is realized because the impact will not last long.

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Section: A Spur To the Country's Economic Growth 59supporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 99%

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Malaysian Stock Market: A Spur to the Country’s Economic Growth

Nordin¹,

Nordin²,

Shahimi³

2016

CUBR

View full text Add to dashboard Cite

show abstract

“…By 2012, the US, UK, Japan and France had TMC to GDP ratio of 114%, 112%, 61.8% and 69.8% respectively, while their lower income counterparts, Kenya, Egypt, Ghana and Nigeria had a ratio of 36.3%, 22.1%, 8.5% and 21.5% respectively (World Bank, 2012). These statistics merely validate the research evidence that lower income countries have a less developed capital market than their developed counterparts, and the funding contribution of the capital market in relation to bank credit to economic development tended to increase as the economy transmits to higher level of development (Thumrongvit, Kim &Pyun, 2013).…”

Section: Stock Marketmentioning

confidence: 76%