Role of Stock Exchanges in Regional Economic Progress: A South Asia Perspective

Chowdhury, Emon Kalyan (2024): Role of Stock Exchanges in Regional Economic Progress: A South Asia Perspective. Forthcoming in: Portfolio , Vol. 4, No. 36 (12 January 2025): pp. 10-22.

Abstract

This study investigates the impact of stock market development on economic growth in South Asia, focusing on India, Bangladesh, Pakistan, and Sri Lanka. Using panel data analysis and considering key macroeconomic variables, the study finds a strong positive correlation between stock market capitalization and turnover, and GDP growth. However, significant heterogeneity exists across countries. India demonstrates substantial growth driven by mature markets, while others face challenges related to liquidity and regulatory oversight. The study emphasizes the crucial role of strong governance, financial literacy, regional cooperation, and policies that encourage long-term investment in unlocking the full potential of stock markets to drive sustainable economic progress in South Asia.

• Item Type: MPRA Paper
• Language: English
• Keywords: Stock market development; economic growth; South Asia; financial markets; regional integration
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit; F - International Economics > F3 - International Finance; G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies

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