Open AccessImpact of Stock Market Development on Economic Growth in BRICS
Author(s) -
Godfrey Osaseri,
Ifuero Osad Osamwonyi
Publication year - 2018
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v10n1p23
Subject(s) - stock market , economics , robustness (evolution) , stock (firearms) , panel data , economic indicator , econometrics , monetary economics , financial economics , macroeconomics , geography , biochemistry , context (archaeology) , chemistry , archaeology , gene
The study examines Stock Market development and economic growth in BRICS, Quarterly time series data for the period 1994QI to 2015Q4 were sourced from World Bank Indicator. The Panel Least Squares based on the fixed effect estimation was employed to determine how stock market development impacts on the economic growth of BRICS. Diagnostics tests were conducted to ascertain the robustness and stability of the regression results. The findings reveal that stock market development exerts significant impact on the economic growth. The study revealed that there is a positive correlation between stock market development indicators and BRICS’s economic growth. The study recommends that the weakness of each of the BRICS member country should be taken as policy focus and strategies necessary to strengthen them should be swiftly applied by the governments.