The Role of the Stock Market in the Sustainable Growth of the Mongolian Economy
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Economic development is probably the most pressing issue in almost every part of the world. Also, the globalization of the securities markets is bringing increased attention to stock market throughout the world. To assess the potential for stock markets in transition economies like Mongolia, it is important to understand which factors are the determinants of economic growth and stock market development. The development of stock markets in transition economies also depend on the degree of macroeconomic stability, the evolution of securities and corporate laws, and the assets accumulated by institutional investors in each country. This study has been conducted to assess the relationship between economic growth and stock market in Mongolia by using multiple regression tests for the period of 1995-2008. It seems necessary to divide the stock market development periods into two sub-periods: Period 1 including the time since the secondary market started and before the impressive stock market report 1995-2006; Period 2 including the times during stock market has reached huge result in history, the impact of global financial crisis, and high level of inflation rate. Empirical results show there were no big difference between 2 periods and in terms of stock market efficiency, the results from multiple regression tests suggest that the stock market was insignificant and did not contribute to the economic growth.
Abstract
Economic development is probably the most pressing issue in almost every part of the world. Also, the globalization of the securities markets is bringing increased attention to stock market throughout the world. To assess the potential for stock markets in transition economies like Mongolia, it is important to understand which factors are the determinants of economic growth and stock market development. The development of stock markets in transition economies also depend on the degree of macroeconomic stability, the evolution of securities and corporate laws, and the assets accumulated by institutional investors in each country. This study has been conducted to assess the relationship between economic growth and stock market in Mongolia by using multiple regression tests for the period of 1995-2008. It seems necessary to divide the stock market development periods into two sub-periods: Period 1 including the time since the secondary market started and before the impressive stock market report 1995-2006; Period 2 including the times during stock market has reached huge result in history, the impact of global financial crisis, and high level of inflation rate. Empirical results show there were no big difference between 2 periods and in terms of stock market efficiency, the results from multiple regression tests suggest that the stock market was insignificant and did not contribute to the economic growth.
참고문헌 (7)
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