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Tuesday, April 28, 2020 | History

2 edition of Stock market development and financial intermediary growth found in the catalog.

Stock market development and financial intermediary growth

AslД± DemirgГјГ§-Kunt

Stock market development and financial intermediary growth

a research agenda

by AslД± DemirgГјГ§-Kunt

  • 267 Want to read
  • 33 Currently reading

Published by Policy Research Dept., World Bank in Washington, D.C. (1818 H St., NW, Washington 20433) .
Written in English

    Places:
  • Developing countries.
    • Subjects:
    • Stock exchanges -- Developing countries.,
    • Financial institutions -- Developing countries.

    • Edition Notes

      StatementAsli Demirgüç-Kunt and Ross Levine.
      SeriesPolicy research working papers ;, WPS 1159
      ContributionsLevine, Ross.
      Classifications
      LC ClassificationsHG3881.5.W57 P63 no. 1159
      The Physical Object
      Pagination35 p. ;
      Number of Pages35
      ID Numbers
      Open LibraryOL1148542M
      LC Control Number94121407
      OCLC/WorldCa28729243

      The Role of the Stock Exchange in the Economy. You may be surprised to discover the number of stock markets blanketing the globe. Even a country not known for having a sophisticated economy, like.


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Stock market development and financial intermediary growth by AslД± DemirgГјГ§-Kunt Download PDF EPUB FB2

World stock markets are booming. Between andstock market capitalization grew from $2 trillion to $10 trillion, an average 15 percent a year. A disproportionate amount of this growth was in emerging stock markets, which rose from 3 percent of world stock market capitalization to 14 percent in the same period.

In a financial system, stock market plays a crucial role in economic growth. The Dynamics of Stock Market Performance Fundamentals and Economic Growth in. Demirgüç-Kunt, A. and Levine, R. (a) ‘Stock Market Development and Financial Intermediaries: Stylized Facts’, The World Bank Economic Review, 10 (2): – CrossRef Google Scholar Demirgüç-Kunt, A.

and Levine, R. (b) ‘Stock Markets, Corporate Finance and Economic Growth: An Overview’, The World Bank Economic Review, 10 Cited by: Additional Physical Format: Online version: Demirgüç-Kunt, Aslı, Stock market development and financial intermediary growth.

Washington, D.C. ( H St., NW. Recently, Bank programs have stressed the development of capital markets, especially stock markets, but little research has been done in measuring the level ofstock market development or understanding the relationship between the development of Stock market development and financial intermediary growth book markets and the functioning of financial intermediaries.

The article constructs aggregate indexes and analyzes them to document the relationship between the emergence of stock markets and the growth of financial intermediaries. It produces a set of stylized facts that facilitates and stimulates research into the links among stock markets, economic development, and corporate financing by: Stock Market Development and Financial Intermediary Growth A Research Agenda Asli DemirgOu-Kunt and Ross Levine The relationship between the development of stock markets and the functioning of financial intermediaries may be complemen-tary.

Policy Resea WWkingP pen disseminatethefindings of work in progres nd arcueage txhchangedides arnongBankc. Stock market development and financial intermediaries: stylized facts (English) Abstract.

World stock markets are booming. Between andstock market capitalization grew from $2 trillion to $10 trillion, an average 15 percent a year. A disproportionate amount of this growth was in emerging stock markets, which rose from 3 percent Cited by: financial development on the volatility of economic growth Stock market development and financial intermediary growth book.

We use an indicator of financial intermediary development developed by the literature on finance and growth to explore the relation between financial intermediary development and growth volatility.

A second relevant strand of literature has emphasized the magnifying effect that. the role of financial intermediaries in promoting economic growth. Recent pa- pers have shown that improved financial market development is associated with growth, using a variety of methodologies and data sets.1 One of the basic explana-Cited by: Assuming that banks and financial intermediaries are in a better position than stock markets to address agency problems (for example, Diamond ; Stiglitz ), it is then possible that stock market development may hamper economic growth if it happens at the expense of banking system development.

Financial market development and economic growth draw from a history of economic theory. Examining the schools of economic thought, The Classics, Neo-Classics and Monetarists believed in the funds mobilising nature of the -nancial markets and how these funds were allocated into productive activities via the market mechanism.

Stock market development and financial intermediary growth book The lack of data on stock market development for a large number of countries before prevents us from exploring in more detail the effect of alternative sources of external finance on the relation between financial intermediary development and growth by: Abstract.

Stock market development and financial intermediary growth book relationship between the development of stock markets and Stock market development and financial intermediary growth book functioning of financial intermediaries may be complemen-tary.

Policy Resea WWkingP pen disseminatethefindings of work in progres nd arcueage txhchangedides arnongBankc taff and auo4hs intecdn deveIopmaeissuecs leswpapea,distdibuedbytheResearchAdviso1) Srff,canythenunesoftheauthora,rflect nblyfr btviews,and.

I n recent years, there has been increasing interest in the economics literature in the role of financial intermediaries in promoting economic papers have shown that improved financial market development is associated with growth, using a variety of methodologies and data sets.1 One of the basic explanations for this pattern is that the financial sector serves to reallocate funds.

The results suggest that economic growth, banking development, stock market liquidity, investment and macroeconomic stability are key determinants of stock market development in the region. Interestingly, the study finds that savings have a significant and detrimental impact on the growth of equity markets in the region.

Downloadable. World stock markets are booming. Between andstock market capitalization grew from $2 trillion to $10 trillion, an average 15 percent a year.

A disproportionate amount of this growth was in emerging stock markets, which rose from 3 percent of world stock markets capitalization to 14 percent in the same period.

Yet there is little empirical evidence about how important. In terms of the negative relationship between the stock market and the economy, a possible explanation could be that the stock market is a tool used by the Chinese government to achieve its specific goals rather than a real reflection of the economic growth and the potential existence of irrational prosperity on the A share markets, which could cause a financial by: financial intermediary.

an institution that collects funds from savers and invests these funds in financial assets (p. ) n. a situation in which stock market prices rise steadily over time (p. ) bear market. a situation in which stock market prices decline steadily over time (p. ) par value.

liquidity. The impact of these factors on stock market development in emerging markets was then tested using an empirical model (Equation 2). FDI, savings, economic growth, trade openness, exchange rates, banking sector development and stock market liquidity to a larger extent had a positive impact on stock market development in emerging by: 1.

defining stock market development empirically, these data facilitate further re-search into the relationship between stock market development and financial intermediaries, corporate finance decisions, and economic growth. These mea-sures, ranked for each country, can be used for intercountry comparisons of the level of stock market development.

The financial intermediary must play a greater role in encouraging and bringing new issuers to the market, efficiently aggregating funds from investors and investing the same.

the financial system in the short run. Second, despite the initial fast growth of the stock market, its role of resource allocation in the economy has been both limited and ineffective. Further development of China’s financial markets is the most important long-term objective.

Third, we find that the most successful part of. FINANCIAL MARKETS AND DEVELOPMENT JOSEPH E. STIGLITZ Stanford University1 I. INTRODUCTION Eariier literature on the development process stressed the importance of capital accumulation, and the role of financial institutions in that process.

This paper stresses the importance of the processes and institutions by which capital is allocated, and the. Financial Development and Economic Growth, Stock Market Perspective [Oscar Chiwira] on *FREE* shipping on qualifying offers. The last two decades have witnessed a rapid growth of stock markets in emerging economies both in terms of number and market capitalization.

The proliferation of stock exchanges in Africa indicate that a number of countries now consider them as.

The paper finds that: (1) real income, saving rate, financial intermediary development, and stock market liquidity are important determinants of stock market capitalization; (2) macroeconomic volatility does not prove significant; and (3) stock market development and financial intermediary development are complements instead of substitutes.

A financial intermediary is a financial institution such as bank, building society, insurance company, investment bank or pension fund. A financial intermediary offers a service to help an individual/ firm to save or borrow money. A financial intermediary helps to facilitate the different needs of lenders and borrowers.

Demirgûc-Kunt A. and R. Levine (), “Stock Market Development and Financial Intermediaries: Stylized Facts”, The World Bank Economic Review 10(2) – CrossRef Google Scholar Diamonte R., J. Liew and R. Stevens (), “Political Risk in Emerging and Developed Markets”, Financial Analysts Journal 52(3), –Author: Costas Siriopoulos, Dimitrios Asteriou.

Disintermediary: Anything that removes the "middleman" (intermediary) in a supply chain. A disintermediary often allows the consumer to interact directly with.

Get this from a library. Stock market development and financial intermediaries: stylized facts. [Aslı Demirgüç-Kunt; Ross Levine; World Bank. Policy Research Department. Finance and Private Sector Development Division.]. stock market and banking development mea-sured at the beginning of the period robustly predict future rates of economic growth, cap-ital accumulation, productivity growth, and private saving rates.

We find that stock market liquidity and banking development both pre-dict long-run growth, capital accumulation, and productivity improvements. Financial Institutions and Markets across Countries and over Time Data and Analysis of financial institutions and markets across countries.

The standard indicators of financial intermediary and market development have increased over the past decades. However, progress has been uneven across income groups and Size: KB. significant impact on the financial market of each country.

As a special hypothesis we can highlight: capital market growth driven by by the development of insurance. insurance companies are one of greatest employers in the world, and thus affect the employment rate, especially in developed Size: KB.

Function of Financial Market Financial markets are places or channels for buying and selling stocks, bonds, and other securities. Traditionally, financial markets have been physical places, such as the New York Stock Exchange, the London Stock these exchanges, stocks and bonds were traded by dealers who would meet face-to-face.

This study attempts to investigate the direction of causality between stock market development and economic growth in the Indian context. Using the cointegration and causality tests for the period June to Junethe study confirms a well defined long-run equilibrium relationship between the stock market development indicators and Cited by: 2.

Finance and Growth: Theory and Evidence 1. Introduction Economists disagree sharply about the role of the financial sector in economic growth.

Finance is not even discussed in a collection of essays by the “pioneers of development economics”[Meier and Seers ()], including three Nobel Prize winners, and Nobel. and economic development in Belgium. We use a new data set of stock market development indicators to argue that flnancial market development substantially afiected economic growth.

We flnd strong evidence that stock market development caused economic growth in Belgium, es-pecially in the period between and The ADB Economics Working Paper Series is a quick-disseminating, informal publication whose titles could subsequently be revised for publication as articles in professional journals or chapters in books.

The series is maintained by the Economics and Research by: Schumpeter's work asserts that the development of financial intermediaries has a direct effect Financial Development and Economic Growth: Does Stock Market Open Published by Scholarly Commons at Hofstra Law, Financial Development and Economic Growth: Does Stock Market Open Published by Scholarly Commons at Hofstra Law, Author: Christina Biedny.

Next, in Model 3, we look at RZ's measure of market capitalization to see whether stock market devel- opment or financial intermediary development is a stronger substitute for trade credit. The interaction with market capitalization is significant, but only at the five percent level; in contrast, measures based on domestic credit or private do.

The IMF and the World Bank supported stock pdf development not solely on the pdf of ideology but rather that the stock market is a natural outgrowth of a developing financial sector as long-term economic growth proceeds and also as a criticism of early development efforts through Development Finance Institutes (DFI) (Singh, 2, ).Stock Market Development in Sub-Saharan Africa: Critical Issues and Challenges Prepared by Charles Amo Yartey and Charles Komla Adjasi 1 Authorized for distribution by George Tsibouris August Abstract This paper examines the economic importance of stock markets in Africa.

It discusses policy. Singh, A. (), ‘ Financial Liberalisation, Stock Markets, and Economic Development ’, The Economic Ebook, (May): – Google Scholar | Crossref Steel, William, Ernest Aryeetey, Hemamala Hettige and Machiko Nissanke (), ‘ Informal Financial Markets under Liberalization in Four African Countries ’, World Development Cited by: