The Effect of Stock Market Development on the Economic Growth

There is a vast literature about the factors influencing the economic growth. In these studies، variables such as saving، physical capital، human capital، training and technology are introduced as factors of the economic growth. All these variables could only explain just some part of the economic growth. Therefore، in recent studies، some structural factors are introduced to explain the growth phenomenon. In this paper، the effect of stock market development accompanying with other factors on the economic growth have been studied. For this purpose، the D-8 countries have been investigated during 1988-2011 via the Panel data model. Stock market development has been described by five proxies. The empirical results indicate that stock market development has a positive and significant effect of on the economic growth in the mentioned countries.