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Market Capitalization and Factors of Its Determination – The Case of Republic of Macedonia

Author

Listed:
  • Diana Boshkovska

    (Ss. Cyril and Methodius University in Skopje, Institute of Economics – Skopje, Republic of Macedonia)

  • Elizabeta Djambaska

    (Ss. Cyril and Methodius University in Skopje, Institute of Economics – Skopje, Republic of Macedonia)

  • Vladimir Petkovski

    (Ss. Cyril and Methodius University in Skopje, Institute of Economics – Skopje, Republic of Macedonia)

  • Vesna Georgieva Svrtinov

    (Ss. Cyril and Methodius University in Skopje, Institute of Economics – Skopje, Republic of Macedonia)

Abstract

The development of the capital market considered thru the market capitalization coefficient (in total amount and in percentage changes) in relation with the GDP of the Republic of Macedonia is the subject of research of this paper. The analysis identifies and explains the factor of capital market development. The focus of the paper is to determine the effects of different factors on the capital market development in the Republic of Macedonia. For these purpose a multivariate linear regression is conducted using the data from 1997-2013. The analysis indicates that the capital market in the Republic of Macedonia is small and underdeveloped. Therefore the economic growth factors taken into consideration for the research have not shown considerable impact on the capital market due to its underdevelopment.

Suggested Citation

  • Diana Boshkovska & Elizabeta Djambaska & Vladimir Petkovski & Vesna Georgieva Svrtinov, 2016. "Market Capitalization and Factors of Its Determination – The Case of Republic of Macedonia," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 16(1), pages 41-52.
    • Handle: RePEc:pet:annals:v:16:y:2016:i:1:p:41-52
    as

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    References listed on IDEAS

    as
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    4. Guglielmo Maria Caporale & Peter G. A Howells & Alaa M. Soliman, 2004. "Stock Market Development And Economic Growth: The Causal Linkage," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(1), pages 33-50, June.
    5. Charles Amo Yartey, 2008. "The Determinants of Stock Market Development in Emerging Economies: Is South Africa Different?," IMF Working Papers 2008/032, International Monetary Fund.
    6. Atje, Raymond & Jovanovic, Boyan, 1993. "Stock markets and development," European Economic Review, Elsevier, vol. 37(2-3), pages 632-640, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    capital market; market capitalization; Calderon-Rossell model; regression; Republic of Macedonia;
    All these keywords.

    JEL classification:

    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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