Record Details

Stock Market and Economic Development: a Causality Test

Journal of Nepalese Business Studies

View Archive Info
 
 
Field Value
 
Title Stock Market and Economic Development: a Causality Test
 
Creator G.C., Surya Bahadur; Pokhara University
Neupane, Suman; Pokhara University
 
Subject stock market; financial system; Granger-causality test
Financial Management
 
Description ABSTRACT

An attempt has been made in this paper to examine the existence of causality relationship between stock market and economic growth based on the time series data for the year 1988 to 2005 using Granger causality test. The study finds the empirical evidence of long-run integration and causality of macroeconomic variables and stock market indicators even in a small capital market of Nepal. The causality has been observed only in real terms but not in nominal variables. In econometric sense, it depicts that the stock market plays significant role in determining economic growth and vice versa. Interestingly, the causation is evident with a lag of 3 to 4 years. Also, the paper reveals the importance of stock market development for fostering economic development.
Journal of Nepalese Business Studies 2006/III/1 pp. 36-44
 
Publisher Faculty of Management Prithivi Narayan Campus
 
Date 2007-03-27
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier https://www.nepjol.info/index.php/JNBS/article/view/481
10.3126/jnbs.v3i1.481
 
Source Journal of Nepalese Business Studies; Vol 3, No 1 (2006); 36-44
2350-8795
 
Language eng
 
Relation https://www.nepjol.info/index.php/JNBS/article/view/481/468
 
Coverage Nepal