 Private capital flows, stock market and economic growth in developed and developing countries: A comparative analysisChee-Keong Choong, Ahmad Zubaidi Baharumshah (), Zulkornain Yusop and Muzafar Shah Habibullah Japan and the World Economy, 2010, vol. 22, issue 2, 107-117 Abstract: Empirically we investigate how three types of private capital flows could promote economic growth in recipient developed and developing countries. Our focus is on the role of stock markets as a channel through which foreign capital flows could promote growth. The findings reveal that FDI exhibits a positive impact on growth, while both foreign debt and portfolio investment have a negative impact on growth in all sample countries. However, our results indicate that stock markets might be a significant channel or leading institutional factor through which capital flows affect economic growth. The findings provide clear implications that the negative impact of private capital flows can be transformed into a positive one if the stock market development has attained a certain threshold level, regardless of whether it is in developed or developing countries. Keywords: Private; capital; flows; Stock; market; Economic; growth; Panel; data; analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:22:y:2010:i:2:p:107-117 Access Statistics for this article Japan and the World Economy is currently edited by Robert Dekle and Yasushi Hamao More articles in Japan and the World Economy from Elsevier |
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