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Institutional Determinants of Stock Market Development in European Union Transition Economies

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  • Yilmaz Bayar

Abstract

Stock markets have become an important market for long run fund flows between savers and investors and also a determinant of economic growth with the emergence of endogenous growth theories. This study investigates the impact of institutional development on stock market development in 8 European Union transition economies during 2002-2013 period employing panel regression. We found that political stability, regulatory quality, rule of law and control of corruption had positive impact on stock market development.

Suggested Citation

  • Yilmaz Bayar, 2016. "Institutional Determinants of Stock Market Development in European Union Transition Economies," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(61), pages 211-226, September.
    • Handle: RePEc:rej:journl:v:19:y:2016:i:61:p:211-226
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    Cited by:

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    2. Huda, Md Nazmul & Hossain, Sayed Mohammad Athar & Shaturaev, Jakhongir, 2023. "Effect of Commodity Exchange on the Economy- Prospects and Challenges," MPRA Paper 118331, University Library of Munich, Germany, revised 14 Mar 2023.
    3. Md. Qamruzzaman & Jianguo Wei, 2018. "Financial Innovation, Stock Market Development, and Economic Growth: An Application of ARDL Model," IJFS, MDPI, vol. 6(3), pages 1-30, August.

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    More about this item

    Keywords

    Institutional determinants; stock market development; Panel data analysis.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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