Opening a Stock Exchange

20 Pages Posted: 3 Oct 2000

Date Written: January 2001

Abstract

Nearly sixty countries have opened their first national stock exchanges since 1950. I investigate the effects on economic growth of these openings in two ways. First, economic growth histories of at least five years are available for seventeen of these countries. On average, the countries that opened stock markets grew faster than a priori similar countries that did not open exchanges; however, the growth rate of investment was lower in the countries opening exchanges over periods of five and ten years. Second, I use two stage least squares to account for possible endogeneity of the decision to open a stock market. Even controlling for this endogeneity, the estimated correlation between opening a stock exchange and economic growth is positive and statistically significant.

JEL Classification: O4

Suggested Citation

Minier, Jenny, Opening a Stock Exchange (January 2001). Available at SSRN: https://ssrn.com/abstract=243548 or http://dx.doi.org/10.2139/ssrn.243548

Jenny Minier (Contact Author)

Miami University ( email )

Department of Statistics
311 Upham Hall100 Bishop Circle
Oxford, OH 45056
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
359
Abstract Views
2,122
Rank
164,389
PlumX Metrics