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Authors
Affiliations
1 Faculty of Business Administration, Eastern University, Road-5, Dhanmondi, Dhaka–1205, BD
2 Department of Business Administration, World University of Bangladesh, Dhanmondi, Dhaka–1205, BH
3 School of Business, Bangladesh Open University, Gazipur–1705, BD
4 Department of Marketing, Faculty of Business Studies, Jagannath University, Dhaka–1100, BD
Source
ANVESHAK-International Journal of Management, Vol 3, No 1 (2014), Pagination: 45-58
Abstract
The stock market plays a pivotal role in the growth of an economy to a great extent. The study investigates the relationship between stock market development and economic growth in five SAARC countries: Bangladesh, India, Pakistan, Srilanka and Nepal using collected secondary data of 15 years for the period of 1996-2010. The relationship has been measured in terms of market capitalization, total value of stocks traded, stock turnover ratio and volume of the stock market determined through the total number of companies listed in the stock exchange of each country in this region. By using linear-log model, the study has found out that stock market affects economic growth significantly in SAARC countries. In addition, the result of the study by employing the stepwise regression analysis shows that the most representative indicator of capital market that is positively associated to the real economic growth of each country is market capitalization.
Keywords
Stock Market Development, Economic Growth, Saarc, Market Capitalization
