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This paper analyzes the relationship between stock market capitalization to GDP and real GDP in 10 Central and Eastern European countries (CEECs) that joined the European Union in 2004 and 2007, with the objective of determining whether the financial markets played a role as drivers of economic development in these countries or vice versa. The methodology, using a cointegrated Vector Autoregressive (VAR) model, is based on the application of three different measures of causality: Granger causality test, Toda-Yamamoto approach and Frequency Domain approach. The results obtained suggest evidence of a causal relationship in both directions between the variables in a significant number of countries, and especially in those where the variables show to be clearly cointegrated (Bulgaria, Hungary, Latvia, Romania, Slovakia and Slovenia).

This paper analyses the relationship between stock market capitalization and real GDP in ten Central and Eastern European countries (CEECs) that joined the European Union in 2004 and 2007, with the objective of determining if the financial markets have played a role as a driver of the economic development in these countries or vice versa. The methodology is based on the application of three different measures of causality between the relevant variables, in order to determine the existence and the direction of causality. Using a cointegrated Vector Autoregressive model (VAR), the authors study the relationship between the relevant variables through the following tests: Granger causality test, Toda-Yamamoto approach and Frequency Domain approach. The results obtained suggest evidence of the existence of this relationship, in both directions, in a significant number of this group of countries, and especially in those there is a long-term relationship.

The importance of understanding the determinants of stock market capitalization take the attention of researchers and policymakers around the world. Nonetheless, there is no consent in the literature about the description of the relationship between globalization along with chosen important macroeconomic factors and stock market capitalization. Hence, this thesis contributes to the argument by assessing the effect of globalization and several macroeconomic factors on stock market capitalization in South Africa. Using yearly data from 1975 to 2017, the thesis adopted Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) unit root tests, Johansen cointegration test, Granger causality and fully modified OLS (FMOLS) regression techniques. FMOLS regression results indicate that trade openness, economic growth and money supply have positive impacts on stock market capitalization. However, globalization and domestic savings have negative association with stock market capitalization. Therefore, this thesis concludes that globalization and the other macroeconomic variables are significant determinants. It is thus recommended that decision makers in South Africa and mostly other developing countries should adopt stock market regulations to protect the domestic stock market against the negative effect of globalization. Results of this thesis can be a guideline for other developing countries to create effective policies around stock market capitalization. ; ÖZ: Borsa kapitalizasyonunun belirleyicilerinin araştırılması dünya genelindeki araştırmacılar ve politikacılar tarafından önem arz etmektedir. Bununla birlikte, literatürde küreselleşme, makro ekonomik faktörler ve borsa kapitalizasyonu arasındaki ilişkiyi inceleyen bir çalışma bulunmamaktadır. Bu nedenle, bu tez küreselleşmenin ve makroekonomik faktörlerin Güney Afrika'daki borsa kapitalizasyonu üzerindeki etkisini araştırmaktadır. Bu tezde, 1975 ve 2017 yılları arasındaki yıllık veriler kullanılarak, Artırılışmış Dickey Fuller (ADF) ve Phillips-Peron (PP) birim kök testleri, Johansen eşbütünleşme testi, Granger nedensellik ve tamamen değiştirilmiş OLS (FMOLS) regresyon teknikleri kullanılmıştır. FMOLS regresyon sonuçları ticaret açığının, ekonomik büyümenin ve para talebinin borsa kapitalizasyonunu pozitif etkilediğini göstermektedir. Bununla birlikte, küreselleşme ve yurtiçi tasarrufların, borsa kapitalizasyonu ile negatif ilişkisi vardır. Dolayısıyla bu tez, küreselleşme ve diğer makroekonomik faktörlerin borsa kapitalizasyonunun önemli belirleyicileri olduğu sonucuna varmıştır. Bu tezden elde edilen sonuçlar, diğer gelişmekte olan ülkelerde de borsa kapitalizasyonu üzerine düzenlemeler yapılabilmesi için örnek olarak kullanılabilir. ; Master of Science in Banking and Finance. Thesis (M.S.)--Eastern Mediterranean University, Faculty of Business and Economics, Dept. of Banking and Finance, 2020. Assist. Prof. Dr. Nigar Taşpınar.

This paper aims to examine stock market with a capacity building perspective for economic growth, focusing on the factors that enhance stock market capitalization in the long term. This study evaluates cross country series data of 26 emerging countries listed at MSCI index, through a period of 2006 to 2019. The data were collected through World Bank, Pakistan Stock Exchange and SECP database. Vector Error correction model and Multiple Regression analysis were applied on data to analyze the impact of assorted factors on stock market capitalization to GDP as a measure of long term capacity. The findings suggest that political stability and corporate tax rate are two important factors that may have significant impact on stock market capitalization to GDP. This research is different from all past researches with respect to methodological, aeon and acclimatization perspective. Capacity building is a relatively new phenomenon adopted from complex adaptive ecosystems and most studies in this area are of theoretical nature. Moreover, the fact that this research has considered not only the long term but also short-term market capitalization perspective, adds to its overall value and originality.

This paper examines the impact of stock market fluctuations on money demand in Italy from a long‐run perspective. The money demand function estimated by Muscatelli and Spinelli (2000) for a long time span is utilized as a benchmark, adding to the specification information on share prices from the Milan Stock Exchange Reform of 1913 to recent years. For a shorter time period (1938–2003), annual observations on stock market capitalization and turnover velocity are also considered. The empirical findings suggest that stock market fluctuations help to explain temporary movements in liquidity preference, rather than its secular patterns. Overall, a positive association emerges between an index of stock market prices that includes dividends and real money balances; however, the estimated long‐run relationship is unstable. In a dynamic, short‐term specification of money demand, the estimated coefficient of deflated stock prices is positive, and therefore compatible with a wealth effect, in the years 1913–1980, while in the last two decades a substitution effect has prevailed and the correlation between money and share prices has been negative. This is likely to reflect a change in financial structure and the increasing role of opportunity costs defined over a wider range of assets. These results are confirmed by data on stock market capitalization. Moreover, in the recent period, stock market turnover and money growth are positively correlated.

An expanding body of literature has investigated the economic impact of terrorist attacks. A part of this literature has focused on financial markets. We examine three research questions: whether markets' reactions to terrorism have changed through time; whether market size and maturity determine reactions, and whether reactions depends upon either the type of targets or the perpetrators of the attack. To this effect, a large -- the London stock exchange -- and a small -- the Athens stock exchange -- capitalization markets are used as the vehicles for the empirical investigation. Results from an event study methodology as well as from conditional volatility models suggest that size and maturity as well as specific attributes of terrorist incidents are possible determinants of markets' reactions. [Copyright Elsevier B.V.]