Stock Market and Economic Growth in Malaysia: Casuality Test
Asian Social Science, Vol. 4, No. 4, pp. 86-92, April 2008
7 Pages Posted: 5 May 2009
Date Written: May 3, 2009
Abstract
Stock market has been associated with economic growth through its role as source for new private capital. On the other hand, economic growth may be the catalyst for stock market growth. Thus, the purpose of this paper was to explore causal relationships between stock market and the economy using formal tests of causality developed by C. J. Granger and yearly Malaysia data for the period 1977-2006. Results show that stock market Granger-caused economic activity with no reverse causality observed. The longest significant lag length observed from the results was two years.
Keywords: Growth, Stock market, Stock market and growth relationship, Malaysia’s economy
JEL Classification: G00
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Financial Dependence and Growth
By Raghuram G. Rajan and Luigi Zingales
-
Stock Markets, Banks, and Growth: Panel Evidence
By Thorsten Beck and Ross Levine
-
Stock Markets, Banks, and Growth: Panel Evidence
By Thorsten Beck and Ross Levine
-
Stock Markets, Banks, and Economic Growth
By Ross Levine and Sara Zervos
-
Financial Development and Economic Growth: Views and Agenda
By Ross Levine
-
Stock Markets, Banks, and Growth: Correlation or Causality
By Thorsten Beck and Ross Levine
-
By Thorsten Beck, Asli Demirgüç-kunt, ...
-
Finance, Firm Size, and Growth
By Thorsten Beck, Asli Demirgüç-kunt, ...
-
Finance, Firm Size, and Growth
By Thorsten Beck, Asli Demirgüç-kunt, ...
-
Financial Intermediation and Growth: Causality and Causes
By Ross Levine, Norman Loayza, ...