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Dynamic impacts of SME stock market development and innovation on macroeconomic indicators: A Post-Keynesian approach

Trang Nguyen, Taha Chaiechi, Lynne Eagle and David Low

Economic Analysis and Policy, 2020, vol. 68, issue C, 327-347

Abstract: This study is grounded on the propositions of Kaleckian–Post-Keynesian​ macroeconomic framework to explore the dynamic impacts of SME (Small and Medium Enterprise) stock market development and innovation on key macroeconomic variables in Hong Kong, Singapore, Thailand, and Malaysia. For the reported empirical analysis, a Structural Vector Error Correction (SVEC) model and an impulse response function (IRF) were adopted. The evidence shows that SME stock market development and/or innovation have small but positive impacts on short-run economic stimulation. The SME stock market development promotes economic growth through the combination of the following channels: private investment, savings and productivity in Hong Kong, Singapore, and Thailand. Innovation, on the other hand, fosters growth through the combination of these channels and the employment channel in all four countries.

Keywords: SME stock market; Innovation; Post-Keynesian economics; Structural VEC; Impulse response analysis (search for similar items in EconPapers)
JEL-codes: E44 O16 O31 O43 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.eap.2020.10.002

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