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Examining the effect of stock market development on economic growth in Thailand

Thailand's stock market is considered a fast-emerging market in Asian. Previous studies indicate that the stock market (SM) in Thailand plays a vital role in boosting the economy. However, initial studies suggest that per capita GDP growth and liquidity of the stock market development (SMD) are...

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Main Authors: Muhammad Sodbir Hamzah,, Hussin Abdullah,, Mohamad Shukri Abdul Hamid,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/14584/1/37497-118388-1-SM.pdf
http://journalarticle.ukm.my/14584/
http://ejournals.ukm.my/ebangi/issue/view/1244
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spelling my-ukm.journal.145842020-05-07T03:55:50Z http://journalarticle.ukm.my/14584/ Examining the effect of stock market development on economic growth in Thailand Muhammad Sodbir Hamzah, Hussin Abdullah, Mohamad Shukri Abdul Hamid, Thailand's stock market is considered a fast-emerging market in Asian. Previous studies indicate that the stock market (SM) in Thailand plays a vital role in boosting the economy. However, initial studies suggest that per capita GDP growth and liquidity of the stock market development (SMD) are fluctuating and the gap is very big. This study examines the impact of SMD on Economic Growth (EG) in Thailand. The indicators used for SMD are stock turnover ratio (STO) and the total value of the traded stock (TVS). EG is measured using per capita gross domestic product (GDPC). Also, two macroeconomic variables are included, which is the inflation rate and the real interest rate. A time-series data from 1985 to 2018 is used and analyzed using the autoregressive distributed lag (ARDL) bound testing approach to cointegration as well as error correction model. The findings indicate that the impact of SMD is significant on EG. STO and TVS are statistically significant in the long run but the effect for STO and TVS is positive and TVS is negative. In the short run, all indicators are not significant. So, the findings show that by increasing STO, SMD and EG will also increase. Further research is needed to look at the effect of the legal system and macroeconomic policies in Thailand as well as its effect on SMD. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14584/1/37497-118388-1-SM.pdf Muhammad Sodbir Hamzah, and Hussin Abdullah, and Mohamad Shukri Abdul Hamid, (2020) Examining the effect of stock market development on economic growth in Thailand. e-BANGI: Jurnal Sains Sosial dan Kemanusiaan, 17 (1). pp. 52-61. ISSN 1823-884x http://ejournals.ukm.my/ebangi/issue/view/1244
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description Thailand's stock market is considered a fast-emerging market in Asian. Previous studies indicate that the stock market (SM) in Thailand plays a vital role in boosting the economy. However, initial studies suggest that per capita GDP growth and liquidity of the stock market development (SMD) are fluctuating and the gap is very big. This study examines the impact of SMD on Economic Growth (EG) in Thailand. The indicators used for SMD are stock turnover ratio (STO) and the total value of the traded stock (TVS). EG is measured using per capita gross domestic product (GDPC). Also, two macroeconomic variables are included, which is the inflation rate and the real interest rate. A time-series data from 1985 to 2018 is used and analyzed using the autoregressive distributed lag (ARDL) bound testing approach to cointegration as well as error correction model. The findings indicate that the impact of SMD is significant on EG. STO and TVS are statistically significant in the long run but the effect for STO and TVS is positive and TVS is negative. In the short run, all indicators are not significant. So, the findings show that by increasing STO, SMD and EG will also increase. Further research is needed to look at the effect of the legal system and macroeconomic policies in Thailand as well as its effect on SMD.
format Article
author Muhammad Sodbir Hamzah,
Hussin Abdullah,
Mohamad Shukri Abdul Hamid,
spellingShingle Muhammad Sodbir Hamzah,
Hussin Abdullah,
Mohamad Shukri Abdul Hamid,
Examining the effect of stock market development on economic growth in Thailand
author_facet Muhammad Sodbir Hamzah,
Hussin Abdullah,
Mohamad Shukri Abdul Hamid,
author_sort Muhammad Sodbir Hamzah,
title Examining the effect of stock market development on economic growth in Thailand
title_short Examining the effect of stock market development on economic growth in Thailand
title_full Examining the effect of stock market development on economic growth in Thailand
title_fullStr Examining the effect of stock market development on economic growth in Thailand
title_full_unstemmed Examining the effect of stock market development on economic growth in Thailand
title_sort examining the effect of stock market development on economic growth in thailand
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/14584/1/37497-118388-1-SM.pdf
http://journalarticle.ukm.my/14584/
http://ejournals.ukm.my/ebangi/issue/view/1244
_version_ 1669008487719370752
score 13.211869

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