Abstract
The stock market is a crucial component of the financial system of any economy. This study proceeds with dynamic
panel data investigation of the effect of development in the stock market on economic progress. The changes in the
stock market are estimated using the market capitalization and stock value traded indicators. Based on the Fully
Modified Ordinary Least Squares (FMOLS) estimates on selected economies, it is evident that stock value traded
had a significant positive effect on the economic progress of both developed and developing economies. While
market capitalization had a significant negative effect on the developed economies only. Finally, the study suggests
that policymakers may design policies that enhance stock value traded.
Muhammad Shahid Hassan, Noman Arshed, Muhammad Naveed Tahir, Abdullah Imtiaz. (2019) Economic Prospects of Stock Market Development: A Comparison of Two Worlds, Paradigms , Vol 13, Issue 1.
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