Are Small Stock Markets Different?

Posted: 27 May 2003

See all articles by Jenny Minier

Jenny Minier

University of Kentucky - Department of Economics

Multiple version iconThere are 2 versions of this paper


Recent literature has established a positive correlation between financial development and economic growth. While papers such as Bencivenga, Smith and Starr (1995) identify potential nonlinearities in this relationship, empirical research to date has allowed for only linear relationships. This paper uses regression tree techniques to investigate whether the partial correlation between growth and financial development differs based on countries' levels of financial and economic development. As in previous studies, growth and financial development are positively correlated in countries with high levels of market capitalization; however, this relationship does not appear to hold for countries with low levels of market capitalization.

Keywords: Stock markets, economic growth, financial development

JEL Classification: O40, O16

Suggested Citation

Minier, Jenny, Are Small Stock Markets Different?. Journal of Monetary Economics, 2003. Available at SSRN:

Jenny Minier (Contact Author)

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics