The relationship between stock market development and economic growth has been an important issue of debate. A well functioning stock market can affect economic growth through the channelling of more saving to investment and the improvement of capital productivity with efficient allocation of resources. This contrasts with the view that stock market development has little relevance, or is even unimportant, to real economic activity. In this respect, the majority of the empirical studies are concerned with advanced markets and developed emerging markets, and none exist for Arab markets. The argument of this study is that economic growth is a function of stock market development and economic reform indicators, with the main determinants of growth as the control variables set. The study considered a comprehensive theoretical framework that linked stock market development to economic growth. It presented a comparative assessment on macroeconomic level and stock market development indicators for the Arab countries with the East Asia-Pacific countries and the G-7 economies. The most important finding indicated that Arab stock markets have no significant effect on economic growth due to the lack of transparency and illiquidity that limit the effectiveness of these markets in the economy. In contrast, the results from the East Asia-Pacific countries and the G-7 economies suggested that stock market development has a significant effect on, and is positively correlated with, economic growth. / Doctor of Philosophy (Economics and Finance) (PhD)
| Identifer | oai:union.ndltd.org:ADTP/216340 |
| Date | January 2005 |
| Creators | Abu-Sharia, Rateb Moh'd Ahmad, University of Western Sydney, College of Law and Business, School of Economics and Finance |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
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