Sarkar, Prabirjit (2007): Capital Accumulation in Less Developed Countries: Does Stock Market Matter?
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Our panel data analysis (1988-2002) of a sample of 31 less developed countries (LDCs) shows that the stock market capitalization as a percentage of GDP- an important indicator of stock market development- has no relationship with the growth rates of gross fixed capital formation (GGKF). Our time series analysis (1976-2002) of 16 LDCs shows that in 11 cases there is no meaningful relationship between the stock market turnover ratio and the growth of capital accumulation (GGKF). For 5 LDCs (belonging to the so-called French-origin civil law category) with low shareholder protection we get a positive long-term relationship.
|Item Type:||MPRA Paper|
|Institution:||CBR, University of Cambridge|
|Original Title:||Capital Accumulation in Less Developed Countries: Does Stock Market Matter?|
|Keywords:||stock market; capital accumulation; growth; and liberalisation|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O50 - General
G - Financial Economics > G0 - General > G00 - General
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
|Depositing User:||Prabirjit Sarkar|
|Date Deposited:||26. Sep 2007|
|Last Modified:||14. Feb 2013 01:41|