Premium
Regional stock markets and the economic development of S outheast A sia
Author(s) -
Niblock Scott J.,
Heng Panha,
Sloan Keith
Publication year - 2014
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/apel.12068
Subject(s) - stock (firearms) , stock exchange , stock market , restricted stock , financial market , business , liberalization , primary market , stock market bubble , international economics , economics , finance , market economy , geography , archaeology , context (archaeology)
The paper examines the contribution made by the establishment and operation of a local stock exchange to the economic development of S outheast A sian ( SEA ) countries. The paper informs investors and policymakers about the current status of SEA stock market development and the associated positive and negative effects of such initiatives. Policymakers have placed a clear focus on SEA stock markets as a primary driver of regional economic growth. However, it is questionable whether SEA is ready for such an ambitious economic initiative, particularly given the reported negative effects of lesser developed stock markets. Despite these negative implications, the benefits appear to outweigh the costs for SEA stock markets. It is perceived that SEA stock markets will drive further economic reform, financial liberalisation, and market integration, promising tremendous benefits for both the region and the international investment community. The paper concludes with questions regarding the efficiency of stock markets in SEA and offers recommendations for further empirical research.