Stock market and economic growth of Malaysia, Thailand and Indonesia

This study aims to determine the long run and short run relationship between stock market development and economic growth of Malaysia, Thailand and Indonesia. This study was using time series data from 1988 until 2012 for Malaysia and Thailand; 1989 until 2012 for Indonesia. The dependent variable w...

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Main Author:	Hii Hie Ping
Format:	Thesis
Language:	English English
Published:	2016
Subjects:	HG4551-4598 Stock exchanges
Online Access:	https://eprints.ums.edu.my/id/eprint/37600/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/37600/2/FULLTEXT.pdf
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id	my-ums-ep.37600
record_format	uketd_dc
spelling	my-ums-ep.376002023-11-22T02:37:21Z Stock market and economic growth of Malaysia, Thailand and Indonesia 2016 Hii Hie Ping HG4551-4598 Stock exchanges This study aims to determine the long run and short run relationship between stock market development and economic growth of Malaysia, Thailand and Indonesia. This study was using time series data from 1988 until 2012 for Malaysia and Thailand; 1989 until 2012 for Indonesia. The dependent variable was GDP per capita while the independent variables included stock market development indicators which were market capitalization ratio and value traded ratio to represent the size and liquidity of the stock market, respectively. The variables of discount rate and openness ratio included as control variables. The long run and short run relationship between stock market and economic growth were determined by using Autoregresslve Distributed (ARDL) bounds test and Error Correction Model (ECM), respectively. The empirical results have shown that the size of Malaysian stock market has positive long run relationship to economic growth while liquidity of Malaysian stock market boosts economic growth in long run and short run. The size and liquidity of Thailand stock market have positive long run and short run impact to economic growth. For Indonesia, liquidity of Indonesian stock market has an effect on economic growth in long run and short run but the size of Indonesian stock market is not a responsible factor to lead economic growth. The well-functioning and well-developed stock market promotes economic growth. The private sector and government sector can contribute some strategies to improve the economic growth in the future such as internationalize the stock market, use advance technology system, innovate the new products, educate and build confidence of the investors. 2016 Thesis https://eprints.ums.edu.my/id/eprint/37600/ https://eprints.ums.edu.my/id/eprint/37600/1/24%20PAGES.pdf text en public https://eprints.ums.edu.my/id/eprint/37600/2/FULLTEXT.pdf text en validuser masters Universiti Malaysia Sabah Fakulti Perniagaan, Ekonomi dan Perakaunan
institution	Universiti Malaysia Sabah
collection	UMS Institutional Repository
language	English English
topic	HG4551-4598 Stock exchanges
spellingShingle	HG4551-4598 Stock exchanges Hii Hie Ping Stock market and economic growth of Malaysia, Thailand and Indonesia
description	This study aims to determine the long run and short run relationship between stock market development and economic growth of Malaysia, Thailand and Indonesia. This study was using time series data from 1988 until 2012 for Malaysia and Thailand; 1989 until 2012 for Indonesia. The dependent variable was GDP per capita while the independent variables included stock market development indicators which were market capitalization ratio and value traded ratio to represent the size and liquidity of the stock market, respectively. The variables of discount rate and openness ratio included as control variables. The long run and short run relationship between stock market and economic growth were determined by using Autoregresslve Distributed (ARDL) bounds test and Error Correction Model (ECM), respectively. The empirical results have shown that the size of Malaysian stock market has positive long run relationship to economic growth while liquidity of Malaysian stock market boosts economic growth in long run and short run. The size and liquidity of Thailand stock market have positive long run and short run impact to economic growth. For Indonesia, liquidity of Indonesian stock market has an effect on economic growth in long run and short run but the size of Indonesian stock market is not a responsible factor to lead economic growth. The well-functioning and well-developed stock market promotes economic growth. The private sector and government sector can contribute some strategies to improve the economic growth in the future such as internationalize the stock market, use advance technology system, innovate the new products, educate and build confidence of the investors.
format	Thesis
qualification_level	Master's degree
author	Hii Hie Ping
author_facet	Hii Hie Ping
author_sort	Hii Hie Ping
title	Stock market and economic growth of Malaysia, Thailand and Indonesia
title_short	Stock market and economic growth of Malaysia, Thailand and Indonesia
title_full	Stock market and economic growth of Malaysia, Thailand and Indonesia
title_fullStr	Stock market and economic growth of Malaysia, Thailand and Indonesia
title_full_unstemmed	Stock market and economic growth of Malaysia, Thailand and Indonesia
title_sort	stock market and economic growth of malaysia, thailand and indonesia
granting_institution	Universiti Malaysia Sabah
granting_department	Fakulti Perniagaan, Ekonomi dan Perakaunan
publishDate	2016
url	https://eprints.ums.edu.my/id/eprint/37600/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/37600/2/FULLTEXT.pdf
_version_	1783727549583458304

Stock market and economic growth of Malaysia, Thailand and Indonesia

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