Wzrost gospodarczy a ceny akcji w krajach Europy Środkowo-Wschodniej
Economic Growth and Stock Prices: Evidence from Central and Eastern European Countries

Summary/Abstract: The paper discusses the problem of relations between a capital market and real economy measuredby the cross-country correlation between long-term stock rate of return and real GDP growth.According to some research results, the correlation is negative for most developed countries inthe long run. Other studies indicate rather the lack of correlation, both for highly developed andemerging market countries. The aim of the paper is to present these somewhat controversial resultsand review plausible reasons for the observed tendencies. The second aim is to present theresults of our research obtained with a sample of Central and Eastern European countries, in whichcapital market began to develop only after the fall of communism, so quite recently. They allowthe conclusion that in the CEE economies the correlation between economic growth and equityreturns is either positive or unclear. It is difficult to find all reasons why it is so, however, generallythese results show that it is difficult to find clear relationship between stock market and economicgrowth in the world economies.

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