The Impact of Stock market on Economic Growth: Evidence of Bangladesh

Abstract

The study investigates the impact of well-functioning stock market in Bangladesh economy (2003-2022). The research has taken account of secondary data and employed regression analysis to measure the intensity of possible influence that Dhaka stock market capitalization has on GDP. It has been demonstrated that the trends in stock market follow parallel momentum along with GDP. The genesis of a functional financial system resides in relevant capital markets that promotes and revitalizes platforms for smooth channeling of funds. A knowledge-based investment environment for investors would pursue higher efficiency and liquidity in the markets. The data collected for the study are analyzed quantitatively and significant statistical evidence have been found that the idea conforms to the analysis. Upper trend in stock market cap reflects inherent profitability and accessibility to resources of listed business companies hence, economic growth is enhanced.