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Capital Accumulation in Less Developed Countries: Does Stock Market Matter?

  • Sarkar, Prabirjit

Our 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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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5053.

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Date of creation: 05 Jul 2007
Date of revision:
Handle: RePEc:pra:mprapa:5053
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  12. Editor, 2007. "Contents," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 3, pages 0-0, December.
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