TAILIEUCHUNG - Economic growth and stock market development in Bahrain

This study investigates the relationship between stock market development and economic growth in the Kingdom of Bahrain over the twenty-five year period of 1990 to 2014. Using regression analysis, the study analyzes the relationship between economic growth, measured by GDP growth rate, and stock market indicators, such as size, liquidity, All-Share Index, turnover, and market capitalization. The first major finding is that stock markets indicators have influence on economic growth in Bahrain. The most significant of these variables are All-Share Index, market capitalization, and turnover ratio. This result indicates that stock market development leads to economic growth in Bahrain. Secondly, by investigating the effect of economic growth on stock market development, the study confirms that economic growth, in turn, also leads to development of the stock market. As such, when the relationship between economic growth and stock market development indicators is subjected to analysis, findings show that stock market development indicators explain variation in economic growth rates even at the sector level. These findings have clear policy implications, in that they provide evidence that strengthening the growth and reform of the stock market will help enhance economic growth in the country; therefore, the government should be encouraged to continue its efforts in this respect. | Journal of Applied Finance Banking vol. 5 no. 2 2015 67-80 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2015 Economic Growth and Stock Market Development in Bahrain Batool K. Asiri1 and Mohamed A. Abdalla2 Abstract This study investigates the relationship between stock market development and economic growth in the Kingdom of Bahrain over the twenty-five year period of 1990 to 2014. Using regression analysis the study analyzes the relationship between economic growth measured by GDP growth rate and stock market indicators such as size liquidity All-Share Index turnover and market capitalization. The first major finding is that stock markets indicators have influence on economic growth in Bahrain. The most significant of these variables are All-Share Index market capitalization and turnover ratio. This result indicates that stock market development leads to economic growth in Bahrain. Secondly by investigating the effect of economic growth on stock market development the study confirms that economic growth in turn also leads to development of the stock market. As such when the relationship between economic growth and stock market development indicators is subjected to analysis findings show that stock market development indicators explain variation in economic growth rates even at the sector level. These findings have clear policy implications in that they provide evidence that strengthening the growth and reform of the stock market will help enhance economic growth in the country therefore the government should be encouraged to continue its efforts in this respect JEL classification numbers O16 O40 Keywords Bahrain Bourse economic growth financial crisis stock market indicators 1Associate Professor Department of Economics Finance University of Bahrain. 2Assistant Professor Department of Economics Finance University of Bahrain. Article Info Received October 24 2014. Revised December 3 2014. Published online March 1 2015 68 Batool K. Asiri and Mohamed

• Đầu tư Chứng khoán
• Bahrain bourse
• Economic growth
• Financial crisis
• Stock market indicators
• Stock market development
• Intangible assets
• Disclosure requirements
• Disclosure index
• Organizations’ corporate financial reporting
• Cumulative abnormal returns
• Event study
• Telecommunication sector
• Financial announcements
• Summary of PHD thesis
• The impact of monetary policy on the stock market
• Stock price and market liquidity
• The stock market
• The development of the stock market
• Business cycle and risk
• Tehran Stock Exchange
• Market development Banks
• Financial market development
• Diaspora remittances at nairobi securities exchange
• Stock market development at nairobi securities exchange
• The Error Correction Term
• Foreign Investor Participation
• Stock Market Development and Nairobi Securities Exchange
• Derivatives market
• Vietnams derivative stock market
• Actual market performance
• Stock market
• Vietnam Securities Depository Center
• Macroeconomic factor
• Two way GMM estimation
• Generalized method of moment
• Stock market performance in Vietnam
• Determinants of stock arket
• Development in southeast Asian countries
• Southeast asian countries
• Asian stock markets
• Panel data analysis
• Vietnam's economic development
• Stock market correlation
• Economic Cooperation Framework Agreement
• Vietnam's stock market
• Economic integration process
• Financial development
• International trade
• Stock market integration
• Evidence in six southeastern Asia countries
• Southeastern Asia countries
• Ph D thesis summary
• Thesis summary PhD in Economics
• The role of trade openness
• Corruption control
• Stock exchange
• State control
• Foreign investment
• State control of Vietnamese stock market
• Economic development
• Quarterly time series data
• World Bank Indicators
• Real gross domestic product
• Panel Generalized method
• Taiwan Stock Market
• Crude Oil Price
• USD Index
• Dow Industrial
• Brand development
• Joint stock bank
• Foreign trade of Vietnam system vietcombank
• Target market
• Banking brand
• Dissertation summary
• Doctoral thesis
• Determinants of company
• Market is reaction to company
• Data and methodology
• Literature review and Hypotheses development
• Obstructive
• Non Obstructive Azoosperm
• Gene Mutations
• Associated with Male Infertility
• Apoptosis
• ROS and Calcium
• Different Ethnicities
• Critical Periods
• Development of Obesity
• Childhood Inmigration
• Obesity
• Emerging Problem
• Economic Efficiency
• Efficiency and Development
• Barriers
• Costs and Concerns
• Conclusions
• References And Resources
• Genetic Mechanisms
• Physiological
• Underpinning Tolerances
• Alkaline and Saline
• Constraints of Broad
• Acre Cropping
• design features
• especially relative
• People and Politicians
• Spain – History
• Development
• Reality and Future
• Public and Pediatrics
• Paediatrics
• Preconstruction Sales
• Aircraft Exchanges
• Immunotherapy
• Overview
• Bacterial Immunotherapy
• Antitumoral Potential
• Vaginal Wall Prolapse
• Surgical Complications
• Synthetic Materials
• Treatment
• Post Prostatic
• Surgery Stress
• Nutrition in Healthy Children
• Growth and Development
• Pediatric Cardiology
• Renal and Cardiovascular
• Pediatric Cardiac Surgery
• Skill and Creativity