Analysing the macroeconomic drivers of stock Market development in the Philippines

Sin-Yu Ho and Nicholas Odhiambo

No 23439, Working Papers from University of South Africa, Department of Economics

Abstract: This paper analyses the macroeconomic drivers of stock market development in the Philippines during the period 2001Q4 to 2016Q4. In particular, the paper examines the impact of banking sector development, inflation rate, exchange rate, economic growth, trade openness, and stock market liquidity on the development of the Philippine stock market. Theoretical and empirical literature reveals diverse views on the relationship between each determinant and stock market development. In addition, the Philippine stock market has experienced remarkable growth in recent decades. However, there is no similar study on this country in the literature. The paper, therefore, enriches the literature by investigating the macroeconomic drivers of stock market development in the Philippines using ARDL bounds testing procedure. The results show that, trade openness has had a negative impact on Philippine stock market development in the long run, whereas the banking sector development and exchange rate have had positive impacts on the development of the Philippine stock market in the short run.

Keywords: macroeconomic drivers; stock market development; the Philippines; ARDL bounds testing (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-mac and nep-sea
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://uir.unisa.ac.za/bitstream/handle/10500/2343 ... he%20Philippines.pdf (application/pdf)

Related works:
Journal Article: Analysing the macroeconomic drivers of stock market development in the Philippines (2018)
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:uza:wpaper:23439

Access Statistics for this paper

More papers in Working Papers from University of South Africa, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Shaun Donovan ().