This paper investigates relationship between stock market development and economic growth by taking into consideration 30 low income and 30 middle/high income group countries. For the study, OSL regression is chosen to identify the link between variables. Authors use Stock market total value traded to GDP; Stock market capitalisation to GDP; Stock market turnover ratio as a proxy for stock market development and GDP growth rate as a proxy for economic growth. Authors also analyse results by dividing countries into two income groups and explain some reasons for outliers.
