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Do stock markets lead to economic growth?

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  • Cooray, Arusha

Abstract

Augmenting the Mankiw, Romer, and Weil (1992) model with a variable for the stock market, this study finds strong support for the stock market augmented model for a cross section of 35 developing economies. In conclusion it is noted that policy measures taken to increase the size, liquidity and activity of the stock market will further enhance growth.

Suggested Citation

  • Cooray, Arusha, 2010. "Do stock markets lead to economic growth?," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 448-460, July.
    • Handle: RePEc:eee:jpolmo:v:32:y::i:4:p:448-460
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    References listed on IDEAS

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