Capital Accumulation in Less Developed Countries: Does Stock Market Matter?
AbstractOur panel data analysis (1988-2002) of a sample of 31 less developed countries (LDCs) shows that the stock market capitalization as a percentage of GDP- an important indicator of stock market development- has no relationship with the growth rates of gross fixed capital formation (GGKF). Our time series analysis (1976-2002) of 16 LDCs shows that in 11 cases there is no meaningful relationship between the stock market turnover ratio and the growth of capital accumulation (GGKF). For 5 LDCs (belonging to the so-called French-origin civil law category) with low shareholder protection we get a positive long-term relationship.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5053.
Date of creation: 05 Jul 2007
Date of revision:
stock market; capital accumulation; growth; and liberalisation;
Find related papers by JEL classification:
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
- G00 - Financial Economics - - General - - - General
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-30 (All new papers)
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