The Impact of Stock Market Development on Inflation and Economic Growth of 16 Asian Countries: A Panel VAR Approach

• Rudra P. Pradhan ^[1] ; Mak B. Arvin ^[2] ; Bele Samadhan ^[3] ; Shilpa Taneja ^[4]
  1. [1] Indian Institute of Technology Kharagpur
  2. [2] Trent University, Peterborough, Ontario
  3. [3] ndian Institute of Technology Kharagpur, India
  4. [4] Indian Institute of Technology Kharagpur, India

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• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 13, Nº. 1, 2013, págs. 203-218
• Idioma: inglés
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  • Empirical macroeconomists have investigated the possible link between the development of stock markets, economic growth, and inflation separately. Unlike earlier work, this paper investigates the nature of causal relations between these variables using a panel Granger causality test on a sample of 16 Asian countries over 1988-2012. Employing a panel vector autoregressive (VAR) model, our results also reveal that these variables are cointegrated, suggesting presence of a long-run equilibrium relationship among them.