Role of Stock Exchanges in Regional Economic Progress: A South Asia Perspective

Emon Kalyan Chowdhury

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the impact of stock market development on economic growth in South Asia, focusing on India, Bangladesh, Pakistan, and Sri Lanka. Using panel data analysis and considering key macroeconomic variables, the study finds a strong positive correlation between stock market capitalization and turnover, and GDP growth. However, significant heterogeneity exists across countries. India demonstrates substantial growth driven by mature markets, while others face challenges related to liquidity and regulatory oversight. The study emphasizes the crucial role of strong governance, financial literacy, regional cooperation, and policies that encourage long-term investment in unlocking the full potential of stock markets to drive sustainable economic progress in South Asia.

Keywords: Stock market development; economic growth; South Asia; financial markets; regional integration (search for similar items in EconPapers)
JEL-codes: E5 F3 G24 (search for similar items in EconPapers)
Date: 2024-11-14, Revised 2024-12-08
New Economics Papers: this item is included in nep-fdg and nep-fle
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Citations:

Forthcoming in Portfolio 36.4(2025): pp. 10-22

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