Relationship between stock market development and economic growth: evidences from 4-Asia countries / Muhammad Adam Molkan

How any given country performs in its economic sector is usually measured by its growth as well as other external and internal factors. In this present study, the researcher deliberately focuses on the stock markets in ASEAN which are Malaysia, Indonesia, Singapore and Thailand by studying the connection between the country's economic growth and its market size, liquidity level of stock market and inflation in those countries by applying 20-year annual data from 2000 to 2019. The present study uses capitalization of stock market ratio as proxy capitalization ratio is used to measure market size, whilst "turnover of stock market" ratio and stock market value traded ratio are used as proxies for stock market liquidity level. Inflation is measured in the form of percentage. GDP per capita is used as proxy for economic growth. The outcome of the research found that market size, liquidity level of stock market namely stock value traded and stock market turnover generally do have a significant contribution to economic growth in those four countries.