Stock markets in BRIC: development levels and macroeconomic implications
Stock markets in BRIC: development levels and macroeconomic implications

Summary/Abstract: The main purpose of the article is the presentation of changes in the stock market development level and their implications for the real economy in BRIC, i.e. Brazil, Russia, India and China. Research method was case studies based on qualitative and quantitative data. First part of the text is devoted to presenting main concepts regarding theoretical linkages between the stock market and real economy. Empirical part begins with the analysis of the changes in the level of stock market development linked with assessment of main functions fulfillment level between 2002 and 2012. Results indicate that the differences between BRIC countries are significant, with Brazil and India having most advanced stock markets and Russia most underdeveloped. Second empirical part focuses on the economic growth effects linked with the stock market development. According to the results, stock markets in BRIC countries influence the real economy mostly through changes in the stock of the economy’s fixed capital. However, this impact is strongest in Brazil and India, while in Russia stock market is of minimal significance (results for China are not fully comparable).

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