EXPLORING THE ROLE OF STOCK EXCHANGES AND EXCHANGE RATES FOR SUSTAINABLE ECONOMIC DEVELOPMENT: A CROSS CULTURE STUDY OF EMERGING AND DEVELOPED MARKETS

Muhammad Naveed Jamil, Hafsa Khan, Zuhaib Nishtar and Dr. Abdul Rasheed
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Muhammad Naveed Jamil: Institute of Business Administration, Khwaja Fareed University of Engineering and Information Technology Rahim Yar Khan, Pakistan
Hafsa Khan: Department of Economics and Finance, International Islamic University Islamabad, Pakistan
Zuhaib Nishtar: Department of Electrical Engineering and New Energy, China Three Gorges University, Yichang, China
Dr. Abdul Rasheed: Assistant Professor, Institute of Business Administration, Khwaja Fareed University of Engineering and Information Technology, Rahim Yar Khan, Pakistan

Bulletin of Business and Economics (BBE), 2023, vol. 12, issue 2, 308-319

Abstract: The study seeks to analyze the developed and emerging countries forecasting the business market strategy of Stock Markets index and Exchange rate index and impact on the country's economy from 1991 to 2021. Annually date of nine developed and nine emerging countries has been considered as sample data for this study. Unit-root-test for stationary, Johansen’s Co-integration, VECM, Granger Causality, ARDL, GMM (panel data) applied to test the short run/long-run impact, association, and behavior of variables among the economic development, stock return and exchange rates. Result of stock returns and exchange rate indicates highly significant and asymmetrical relationships exist each other and with countries growth. Robustness test validates the finding of study. Recommendation and implication are cleared; investment efficiency, portfolio diversification and exchange management to make significant investment decision and predict market behavior, preventive actions for validate both markets.

Keywords: Unit root test (ADF); Johansen’s Co-integration; VECM; ARDL; GMM; Robustness (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:12:y:2023:i:2:p:308-319

DOI: 10.61506/01.00004

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