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Stock Market and Economic Growth in China

Author

Listed:
  • Baotai Wang

    (University of Northern British Columbia)

  • D. Ajit

    (University of Northern British Columbia)

Abstract

This study investigates the impact of stock market development on economic growth in China. To this end, the quarterly data from 1996 to 2011 are used and the empirical investigation is conducted within the unit root and the cointegration framework. The results show that the relationship between the stock market development, proxied by the total market capitalization, and economic growth is negative. This result is consistent with Harris'(1997) finding that the stock market development generally does not contribute positively to economic growth in developing countries if the stock market is mainly an administratively-driven market.

Suggested Citation

  • Baotai Wang & D. Ajit, 2013. "Stock Market and Economic Growth in China," Economics Bulletin, AccessEcon, vol. 33(1), pages 95-103.
    • Handle: RePEc:ebl:ecbull:eb-12-00940
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    References listed on IDEAS

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    Cited by:

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    2. Godfrey Osaseri & Ifuero Osad Osamwonyi, 2019. "Impact of Stock Market Development on Economic Growth in BRICS," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(1), pages 23-30, January.
    3. , Aisdl, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints ucbhp, Center for Open Science.
    4. Yilmaz Bayar & Marius Dan Gavriletea & Dan Constantin Danuletiu & Adina Elena Danuletiu & Emre Sakar, 2022. "Pension Funds, Insurance Companies and Stock Market Development: Evidence from Emerging Markets," Mathematics, MDPI, vol. 10(13), pages 1-13, July.
    5. Tang, Pan & Zhang, Ying & Baaquie, Belal E. & Podobnik, Boris, 2016. "Classical convergence versus Zipf rank approach: Evidence from China’s local-level data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 443(C), pages 246-253.
    6. Mai, Nhat Chi, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints de8zq, Center for Open Science.
    7. Yunus, Nafeesa, 2023. "Long-run and short-run impact of the U.S. economy on stock, bond and housing markets: An evaluation of U.S. and six major economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 211-232.
    8. Ishmael Radikoko & Shadreck A. Mutobo & Mphoeng Mphoeng, 2019. "The Impact of Stock Market Development on Economic Growth: The Case of Botswana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(12), pages 149-149, December.
    9. Akpokerere Othuke Emmanuel & Okoroyibo Eloho Elizabeth, 2020. "Capital Market Performance as a Panacea for Economic Growth in Nigeria," International Business Research, Canadian Center of Science and Education, vol. 13(2), pages 1-1, February.
    10. Giannellis, Nikolaos & Papadopoulos, Athanasios P., 2016. "Intra-national and international spillovers between the real economy and the stock market: The case of China," The Journal of Economic Asymmetries, Elsevier, vol. 14(PA), pages 78-92.
    11. Maku Affor Owen, 2020. "Stock Market Development and Economic Growth: Empirical Evidence From an Institutional Impaired Economy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 496-509, October.
    12. Yakubu, Ibrahim Nandom & Bunyaminu, Alhassan & Abdulrahman, Nuhu Alhassan, 2022. "Stock market development, foreign private investment and economic growth in sub-Saharan Africa," MPRA Paper 115184, University Library of Munich, Germany.

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    More about this item

    Keywords

    Stock Market; Economic Growth; Unit Root; Cointegration;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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