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Do Stock Markets Promote Economic Growth?

  • Jan Hanousek

    (CERGE-EI)

  • Nauro F. Campos

    (CERGE-EI)

  • Randall K. Filer

    (Hunter College & The Graduate Center of the University of New York ; CERGE-EI)

One of the most enduring debates in economics is whether financial development causes economic growth or whether it is a consequence of increased economic activity. Little research into this question, however has used a true causality framework. This paper fills this lacuna by using Granger-causality tests to provide evidence of a positive and significant causal relationship going from stock market development to economic growth, particularly for less developed countries.

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File URL: http://econwpa.repec.org/eps/fin/papers/0012/0012006.pdf
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Paper provided by EconWPA in its series Finance with number 0012006.

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Length: 21 pages
Date of creation: 16 Feb 2001
Date of revision:
Handle: RePEc:wpa:wuwpfi:0012006
Note: Type of Document - Acrobat PDF; pages: 21 ; figures: included
Contact details of provider: Web page: http://econwpa.repec.org

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  29. Christopher D. Carroll & David N. Weil, 1993. "Saving and growth: a reinterpretation," Working Paper Series / Economic Activity Section 140, Board of Governors of the Federal Reserve System (U.S.).
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