Economic growth and stock market development: Evidence from some selected countries

Authors

  • Odbileg Dorjdagva Senior lecturer, National University of Mongolia https://orcid.org/0000-0001-7036-6882
  • Jamiyansharav Batchuluun Senior lecturer, National University of Mongolia https://orcid.org/0009-0000-1166-9744
  • Suvdaa Damiran National University of Mongolia
  • Bayantur Natsagdorj National University of Mongolia

DOI:

https://doi.org/10.15549/jeecar.v11i4.1626

Keywords:

Stock Market Development (SMD), Economic Growth (EG), Vector Auto-Regressive (VAR) model, Granger causality (GG), Unit root

Abstract

By sustaining the required capital and investment, the financial sector plays a critical role in achieving economic growth and stability. This paper conducts a comprehensive examination of the relationships between stock market development and economic growth in 11 post-socialist countries and China. Unbalanced panel data from selected countries from 1995 to 2020 were used for this study. We wanted to disclose the cointegration of crucial variables in assessing Granger causalities using the Vector Auto-Regressive (VAR) model. Our findings confirm the Neutrality Hypothesis (NLH) when we investigated the existence of an independent association between Economic Growth (EG) and the Composite Index of Stock Market Development (SMD). The study's recommendations emphasize the significance of changing economic policies to account for disparities in economic growth and stock market development to ensure sustainable development in the selected countries.

Author Biographies

Odbileg Dorjdagva, Senior lecturer, National University of Mongolia

Odbileg Dorjdagva is a Senior Lecturer in the Department of Finance at the National University of Mongolia. Her research interests are in investment management and entrepreneurship.

Jamiyansharav Batchuluun , Senior lecturer, National University of Mongolia

Jamiyansharav Batchuluun is a Senior Lecturer at the Department of Applied Mathematics at the National University of Mongolia. He teaches Probability theory and Mathematical statistics.

Suvdaa Damiran, National University of Mongolia

Dr. Suvdaa Damiran is a Professor at the Department of Finance at the National University of Mongolia. She teaches public finance and tax management.

Bayantur Natsagdorj , National University of Mongolia

Bayantur Natsagdorj is a Senior Lecturer in the Department of Finance at the National University of Mongolia. She teaches financial management and international finance.

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Published

2024-08-03

How to Cite

Dorjdagva, O., Batchuluun, J., Damiran, S., & Natsagdorj, B. (2024). Economic growth and stock market development: Evidence from some selected countries. Journal of Eastern European and Central Asian Research (JEECAR), 11(4), 754–767. https://doi.org/10.15549/jeecar.v11i4.1626

Issue

Vol. 11 No. 4 (2024): Journal of Eastern European and Central Asian Research

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Copyright (c) 2024 Odbileg Dorjdagva, Jamiyansharav Batchuluun , Suvdaa Damiran, Bayantur Natsagdorj

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