Stock Market Performance and Macroeconomic Fundamentals in the Great Nation: A Study of Pool Mean Group
Stock Market Performance and Macroeconomic Fundamentals in the Great Nation: A Study of Pool Mean Group
Author(s): Suraya Mahmood, Hammed Oluwaseyi Musibau, Rana Muhammad AdeeIL-Farooq, Ibrahim Dolapo RAHEEMSubject(s): Supranational / Global Economy, Business Economy / Management, Financial Markets
Published by: Reprograph
Keywords: economic growth rate; interest rate; exchange rate; inflation rates and stock market;
Summary/Abstract: The study examines the influence of macroeconomic variables interest rate, economic growth, inflation and exchange rate on stock market performance in G7 countries over the period 1980-2015. We employ the estimating technique of Pooled mean group estimation (PMG) to reveal the short run and long run impact of explanatory variables on dependent variable. The study established that long run interest rate and GDP affect the stock market performance positively. Moreover, in short run all the variables are found to be statistically insignificant. The outcomes suggest formulating comprehensive and effective policies to ensure stable macro-economic environment for G7 countries.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XII/2017
- Issue No: 51
- Page Range: 1299-1408
- Page Count: 10
- Language: English
