The Role of the Stock Market in Economic Growth Algerian Case Study

Authors

  • أ. نور الهدى دحماني

Keywords:

stock market, economic growth, market capitalization ratio index, value of shares traded ratio index, co- integration test, error correction model, causality test, legal and economic obstacles

Abstract

The stock market plays a strategic and an important role in boosting

economic growth. This market helps to ensure the necessary liquidity to fund

projects. It also allows the mobilization of savings and financial resources

in the direction of most productive investments. This market thus contributes

to promoting a more efficient allocation of resources, accelerating the

accumulation of physical and human capital and promoting technical

progress.

This research aims to study the causal relationship between stock market

and economic growth in Algeria from 1999 to 2011) using Granger causality

and error correction model in order to determine the long run relationship

and the direction of the causality in both short and long run.

The results of the study clearly show that there is a long run relationship

between stock market and economic growth. The causality test based on error

correction model indicates the existence of a unique causal relationship from

economic growth to the stock market.

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Published

2017-06-04

How to Cite

دحماني أ. ن. ا. (2017). The Role of the Stock Market in Economic Growth Algerian Case Study. Journal of Al-Quds Open University for Humanities and Social Studies, 1(37). Retrieved from https://journals.qou.edu/index.php/jrresstudy/article/view/648

Issue

Vol. 1 No. 37 (2015): العدد السابع والثلاثون، الجزء الأول، محرم 1437هـ/ تشرين الأول 2015م

Section

Research Papers

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