The influence of stock market development of low income and middle/high income group countries on an increase in economic growth

Abstract

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.