Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach

Md. Shakhawat Hossain; Md. Rokonuzzaman

doi:doi:10.11648/j.sjams.20180601.11

| Peer-Reviewed

Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach

Md. Shakhawat Hossain, Md. Rokonuzzaman

Published in Science Journal of Applied Mathematics and Statistics (Volume 6, Issue 1)

Received: 30 October 2017 Accepted: 23 November 2017 Published: 12 January 2018

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

In this study, the impact of stock market, trade and credit by bank on economic growth for nine Latin American countries are examined. Fixed effect panel model with dummy variable approach is used in this research work. Significant Hausman test statistic conferred for fixed effect panel model to analyze this dataset. The inflation rate, import and credit by banking sector have negative impact on GDP growth whereas the rest of the variables, exports, stock market, board money, credit by private sector and interest rate have positive contribution to the GDP growth. Only interest and credit by banking sector are significant. The GDP for Chile is significantly but GDP for all other countries are not significantly different from that of Argentina. In this panel data analysis, 25% variation of GDP can be explained by the independent variables considered in the model.

Published in	Science Journal of Applied Mathematics and Statistics (Volume 6, Issue 1)
DOI	10.11648/j.sjams.20180601.11
Page(s)	1-6
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Panel Data, Hausman Test, Fixed Effect Dummy Variable Model, GDP, Stock Market, Trade

References

[1]	Abbas, A. O. et. al (2016). Impact of Stock Market on Economic Growth Evidence: Dar-es Salam Stock Exchange, Tanzania. Journal of Finance and Accounting, 4 (6), 321-327.
[2]	Bayar, Y. and et. al (2014). Effects of Stock Market Development on Economic Growth: Evidence from Turkey. International Journal of Financial Research, 5 (1), 93-100.
[3]	Calderon-Rossell, R. (1991). The Determinants of Stock market Growth. In S. G. Rhee and R. P. Chang (Eds.), Pacific Basin Capital Markets Research Proceeding of the Second Annual Pacific Basin Finance Conference, 2, 4-6 June, Bangkok, Thailand.
[4]	Cavenile, L., Gengenbach, C., & Palm, F. (2011). Stock Markets, banks, and long run economic growth: A panel cointegration-based analysis. Research Center on Public and Population Economics (Crepp). 2, 3-46.
[5]	Demirguc-Kunt, A., and L. Klapper. (2012). Measuring Financial Inclusion: The Global Findex Database.‖ Policy Research Working Paper 6025, World Bank, Washington, DC.
[6]	El-Wassal, K. A. (2005). Understanding the Growth in merging Stock Markets. Journal of Emerging Market Finance, 4 (3), 227 – 61.
[7]	Hossain, M. S. and et. al (2012). The Impact of Stock Market Development and Banks on Economic Growth for SAARC Countries: A Panel Analysis. Asian Journal of Research in Business Economics & Management, 2 (9), 109-115 (Print).
[8]	Iqbal, N., and Nawaz, S. (2010). Investment, Inflation and Economic Growth Nexus. PIDE, 19.
[9]	Levine, R. and Zervos, S. (1996). Stock Market Development and Long-run Economic Growth. World Bank Policy Research Paper, 582, 1-27.
[10]	Levine, R. and Zervos, S. (1998). Stock Markets, Banks, and Economic Growth. The American Economic Review, 88 (3), 537-558.
[11]	Mishal, Z. A. (2011). Financial Development and Economic Growth: Evidence from Jordan Economy. Journal of Business and Economic Studies, 17 (2), 20-35.
[12]	Mazumder, M. A. (2015). Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange. Global Journal of Management and Business Research: C Finance, 15 (2), Ver-1.0, 44-54.
[13]	Najid, A. and Uma-Tul, S. J. (2012). The Relationship between Inflation and Economic Growth in Pakistan: An Econometrics Approach. Asian Journal of Research in Business, Economics and Management, 2 (9).

Cite This Article

Plain Text BibTeX RIS

APA Style

Md. Shakhawat Hossain, Md. Rokonuzzaman. (2018). Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach. Science Journal of Applied Mathematics and Statistics, 6(1), 1-6. https://doi.org/10.11648/j.sjams.20180601.11

Copy | Download

ACS Style

Md. Shakhawat Hossain; Md. Rokonuzzaman. Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach. Sci. J. Appl. Math. Stat. 2018, 6(1), 1-6. doi: 10.11648/j.sjams.20180601.11

Copy | Download

AMA Style

Md. Shakhawat Hossain, Md. Rokonuzzaman. Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach. Sci J Appl Math Stat. 2018;6(1):1-6. doi: 10.11648/j.sjams.20180601.11

Copy | Download

@article{10.11648/j.sjams.20180601.11,
  author = {Md. Shakhawat Hossain and Md. Rokonuzzaman},
  title = {Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {6},
  number = {1},
  pages = {1-6},
  doi = {10.11648/j.sjams.20180601.11},
  url = {https://doi.org/10.11648/j.sjams.20180601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20180601.11},
  abstract = {In this study, the impact of stock market, trade and credit by bank on economic growth for nine Latin American countries are examined. Fixed effect panel model with dummy variable approach is used in this research work. Significant Hausman test statistic conferred for fixed effect panel model to analyze this dataset. The inflation rate, import and credit by banking sector have negative impact on GDP growth whereas the rest of the variables, exports, stock market, board money, credit by private sector and interest rate have positive contribution to the GDP growth. Only interest and credit by banking sector are significant. The GDP for Chile is significantly but GDP for all other countries are not significantly different from that of Argentina. In this panel data analysis, 25% variation of GDP can be explained by the independent variables considered in the model.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach
AU  - Md. Shakhawat Hossain
AU  - Md. Rokonuzzaman
Y1  - 2018/01/12
PY  - 2018
N1  - https://doi.org/10.11648/j.sjams.20180601.11
DO  - 10.11648/j.sjams.20180601.11
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 1
EP  - 6
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20180601.11
AB  - In this study, the impact of stock market, trade and credit by bank on economic growth for nine Latin American countries are examined. Fixed effect panel model with dummy variable approach is used in this research work. Significant Hausman test statistic conferred for fixed effect panel model to analyze this dataset. The inflation rate, import and credit by banking sector have negative impact on GDP growth whereas the rest of the variables, exports, stock market, board money, credit by private sector and interest rate have positive contribution to the GDP growth. Only interest and credit by banking sector are significant. The GDP for Chile is significantly but GDP for all other countries are not significantly different from that of Argentina. In this panel data analysis, 25% variation of GDP can be explained by the independent variables considered in the model.
VL  - 6
IS  - 1
ER  -

Copy | Download

Author Information

Md. Shakhawat Hossain

Department of Statistics, University of Chittagong, Chittagong, Bangladesh
Md. Rokonuzzaman

Department of Statistics, University of Chittagong, Chittagong, Bangladesh

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Md. Shakhawat Hossain, Md. Rokonuzzaman. (2018). Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach. Science Journal of Applied Mathematics and Statistics, 6(1), 1-6. https://doi.org/10.11648/j.sjams.20180601.11

Copy | Download

ACS Style

Md. Shakhawat Hossain; Md. Rokonuzzaman. Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach. Sci. J. Appl. Math. Stat. 2018, 6(1), 1-6. doi: 10.11648/j.sjams.20180601.11

Copy | Download

AMA Style

Md. Shakhawat Hossain, Md. Rokonuzzaman. Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach. Sci J Appl Math Stat. 2018;6(1):1-6. doi: 10.11648/j.sjams.20180601.11

Copy | Download

@article{10.11648/j.sjams.20180601.11,
  author = {Md. Shakhawat Hossain and Md. Rokonuzzaman},
  title = {Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {6},
  number = {1},
  pages = {1-6},
  doi = {10.11648/j.sjams.20180601.11},
  url = {https://doi.org/10.11648/j.sjams.20180601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20180601.11},
  abstract = {In this study, the impact of stock market, trade and credit by bank on economic growth for nine Latin American countries are examined. Fixed effect panel model with dummy variable approach is used in this research work. Significant Hausman test statistic conferred for fixed effect panel model to analyze this dataset. The inflation rate, import and credit by banking sector have negative impact on GDP growth whereas the rest of the variables, exports, stock market, board money, credit by private sector and interest rate have positive contribution to the GDP growth. Only interest and credit by banking sector are significant. The GDP for Chile is significantly but GDP for all other countries are not significantly different from that of Argentina. In this panel data analysis, 25% variation of GDP can be explained by the independent variables considered in the model.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach
AU  - Md. Shakhawat Hossain
AU  - Md. Rokonuzzaman
Y1  - 2018/01/12
PY  - 2018
N1  - https://doi.org/10.11648/j.sjams.20180601.11
DO  - 10.11648/j.sjams.20180601.11
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 1
EP  - 6
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20180601.11
AB  - In this study, the impact of stock market, trade and credit by bank on economic growth for nine Latin American countries are examined. Fixed effect panel model with dummy variable approach is used in this research work. Significant Hausman test statistic conferred for fixed effect panel model to analyze this dataset. The inflation rate, import and credit by banking sector have negative impact on GDP growth whereas the rest of the variables, exports, stock market, board money, credit by private sector and interest rate have positive contribution to the GDP growth. Only interest and credit by banking sector are significant. The GDP for Chile is significantly but GDP for all other countries are not significantly different from that of Argentina. In this panel data analysis, 25% variation of GDP can be explained by the independent variables considered in the model.
VL  - 6
IS  - 1
ER  -

Copy | Download