EconPapers    
Economics at your fingertips  
 

Private capital flows, stock market and economic growth in developed and developing countries: A comparative analysis

Chee-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)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0922-1425(09)00033-4
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

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
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-06-19
Handle: RePEc:eee:japwor:v:22:y:2010:i:2:p:107-117