Stock Market Development and Capital Accumulation: What the Time Series Evidence Shows

Sarkar, Prabirjit (2007): Stock Market Development and Capital Accumulation: What the Time Series Evidence Shows.

Abstract

The present study analysed time series data of 37 developed and less developed countries over the period 1976-2002. It shows that in the majority of cases (including France, UK and USA) the stock market turnover ratio - an important indicator of stock market development- has no positive long-term relationship with the growth rates of gross fixed capital formation. For some developed countries such as Austria, Italy, Japan and Germany and less-developed countries such as Chile, Egypt, Jamaica, Jordan, Philippines and Venezuela we get a positive long-term relationship. These are by and large the so-called French or German-origin civil law countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: stock market; capital accumulation; growth and liberalisation
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance