Revisiting stock market development and economic growth nexus: The moderating role of foreign capital inflows and exchange rates

References

• Adam, A., & Tweneboah, G. (2009). Foreign direct investment and stock market development: Ghana’s evidence. International Research Journal of Finance and Economic, 26, 178–185.
   Google Scholar
• Adams, S. (2009). Foreign direct investment, domestic investment, and economic growth in Sub-Saharan Africa. Journal of Policy Modeling, 31, 939–949.10.1016/j.jpolmod.2009.03.003
   Web of Science ®Google Scholar
• Alam, A., & Shah, S. Z. (2013). Determinants of foreign direct investment in OECD member countries. Journal of Economic Studies, 40, 515–527.10.1108/JES-10-2011-0132
   Google Scholar
• Alam, I. M., & Hasan, T. (2003). The causality between stock market development and economic growth: Evidence from the united states. Studies in Economics and Finance, 21, 93–104.10.1108/eb028770
   Google Scholar
• Ang, J. B., & McKibbin, W. J. (2007). Financial liberalization, financial sector development and growth: Evidence from Malaysia. Journal of Development Economics, 84, 215–233.10.1016/j.jdeveco.2006.11.006
   Web of Science ®Google Scholar
• Atindéhou, R. B., Gueyie, J.-P., & Amenounve, E. K. (2005). Financial intermediation and economic growth: Evidence from Western Africa. Applied Financial Economics, 15, 777–790.10.1080/09603100500108030
   Google Scholar
• Baharumshah, A. Z., Slesman, L., & Devadason, E. S. (2015). Types of foreign capital inflows and economic growth: New evidence on role of financial markets. Journal of International Development. doi:10.1002/jid.3093
   Web of Science ®Google Scholar
• Bencivenga, V. R., & Smith, B. D. (1991). Financial intermediation and endogenous growth. The Review of Economic Studies, 58, 195–209.10.2307/2297964
   Web of Science ®Google Scholar
• Boone, P. (1994). The impact of foreign aid on savings and growth. London: Centre for Economic Performance, London School of Economics and Political Science.
   Google Scholar
• Brambila-Macias, J., & Massa, I. (2011). Finance-growth nexus: Evidence from a top global reformer. Applied Financial Economics, 21, 529–544.10.1080/09603107.2010.533997
   Google Scholar
• Bristy, H. J. (2014). Impact of financial development on exchange rate volatility and long-run growth relationship of Bangladesh. International Journal of Economics and Financial Issues, 4, 258–263.
   Google Scholar
• Cambazoglu, B., & Karaalp, H. S. (2014). Does foreign direct investment affect economic growth? The case of Turkey. International Journal of Social Economics, 41, 434–449.10.1108/IJSE-02-2012-0173
   Google Scholar
• Caporale, G., Howells, P., & Soliman, A. (2004). Stock market development and economic growth: The causal linkage. Journal of Economic Development, 29(1), 33–50.
   Google Scholar
• Chenery, H., & Eckstein, P. (1970). Development Alternatives for Latin America. Journal of Political Economy, 78, 966–1006.10.1086/259685
   Web of Science ®Google Scholar
• Choong, C.-K., Yusop, Z., Law, S.-H., & Liew, V. K.-S. (2005). Financial development and economic growth in Malaysia: The perspective of stock market. Investment Management and Financial Innovations, 5, 105–115.
   Google Scholar
• Darrat, A., Elkhal, K., & McCallum, B. (2006). Finance and macroeconomic performance: Some evidence from emerging markets. Emerging Markets Finance and Trade, 42, 5–28.10.2753/REE1540-496X420301
   Web of Science ®Google Scholar
• Demetriades, P., & Hussein, K. (1996). Does financial development cause economic growth? Time-series evidence from 16 countries. Journal of Development Economics, 51, 387–411.10.1016/S0304-3878(96)00421-X
   Web of Science ®Google Scholar
• Dickey, D., & Fuller, W. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427–431.
   Web of Science ®Google Scholar
• Dickey, D., & Fuller, W. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49, 1057–1072.10.2307/1912517
   Web of Science ®Google Scholar
• Dornbusch, R., & Reynoso, A. (1989). Financial factors in economic development. American Economic Review, 79, 204–209.
   Web of Science ®Google Scholar
• Elliott, G., Rothenberg, T. J., & Stock, J. H. (1996). Efficient tests for an autoregressive unit root. Econometrica, 64, 813–836.10.2307/2171846
   Web of Science ®Google Scholar
• Engle, R. F., Ghysels, E., & Sohn, B. (2013). Stock market volatility and macroeconomic fundamentals. Review of Economics and Statistics, 95(3), 776–797.10.1162/REST_a_00300
   Web of Science ®Google Scholar
• Enisan, A. A., & Olufisayo, A. O. (2009). Stock market development and economic growth: Evidence from seven sub-Sahara African countries. Journal of Economics and Business, 61, 162–171.10.1016/j.jeconbus.2008.05.001
   Google Scholar
• Fischer, S. (1993). The role of macroeconomic factors in growth. Journal of Monetary Economics, 32, 485–512.10.1016/0304-3932(93)90027-D
   Web of Science ®Google Scholar
• Freckleton, M., Wright, A., & Craigwell, R. (2012). Economic growth, foreign direct investment and corruption in developed and developing countries. Journal of Economic Studies, 39, 639–652.10.1108/01443581211274593
   Google Scholar
• Gala, P. (2007). Real exchange rate levels and economic development: Theoretical analysis and econometric evidence. Cambridge Journal of Economics, 32, 273–288.10.1093/cje/bem042
   Web of Science ®Google Scholar
• Granger, C. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37, 424–438.10.2307/1912791
   Web of Science ®Google Scholar
• Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income. Journal of Political Economy, 98, 1076–1107.10.1086/261720
   Web of Science ®Google Scholar
• Greenwood, J., & Smith, B. (1997). Financial markets in development, and the development of financial markets. Journal of Economic Dynamics and Control, 21, 145–181.10.1016/0165-1889(95)00928-0
   Web of Science ®Google Scholar
• Gurley, J., & Shaw, E. (1955). Financial aspects of economic development. American Economic Review, 44, 515–538.
   Google Scholar
• Gurusamy, S. (2009). Financial markets & inst (3rd ed.). New Dehli: McGraw-Hill.
   Google Scholar
• Hassan, M. K., Sanchez, B., & Yu, J.-S. (2011). Financial development and economic growth: New evidence from panel data. The Quarterly Review of Economics and Finance, 51, 88–104.10.1016/j.qref.2010.09.001
   Google Scholar
• Huang, B., Yang, C., & Hu, J. (2000). Causality and cointegration of stock markets among the United States, Japan and the South China growth triangle. International Review of Financial Analysis, 9, 281–297.10.1016/S1057-5219(00)00031-4
   Google Scholar
• Ireland, P. (1994). Money and growth: An alternative approach. American Economic Review, 84, 47–65.
   Web of Science ®Google Scholar
• Kar, M., Nazlıoğlu, Ş., & Ağır, H. (2011). Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis. Economic Modelling, 28, 685–693.10.1016/j.econmod.2010.05.015
   Web of Science ®Google Scholar
• Kim, E., & Singal, V. (2000). The fear of globalizing capital markets. Emerging Markets Review, 1, 183–198.10.1016/S1566-0141(00)00014-5
   Google Scholar
• Kiong, W., & Jomo, K. (2005). Before the storm: The impact of foreign capital inflows on the Malaysian economy, 1966–1996. Journal of the Asia Pacific Economy, 10, 56–69.10.1080/1354786042000309071
   Google Scholar
• Klein, M., & Olivei, G. (2008). Capital account liberalization, financial depth, and economic growth. Journal of International Money and Finance, 27, 861–875.10.1016/j.jimonfin.2008.05.002
   Web of Science ®Google Scholar
• Kolapo, F., & Adaramola, A. O. (2012). The impact of the nigerian capital market on economic growth (1990–2010). International Journal of Developing Societies, 1, 11–19.
   Google Scholar
• Kolawole, B. O. (2013). Foreign assistance and economic growth in Nigeria: The two-gap model framework. American International Journal of Contemporary Research, 3, 153–160.
   Google Scholar
• Kwiatkowski, D., Phillips, P., Schmidt, P., & Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root Journal of Econometrics, 54, 159–178.10.1016/0304-4076(92)90104-Y
   Web of Science ®Google Scholar
• Laureti, L., & Postiglione, P. (2005). The effects of capital inflows on the economic growth in the med area. Journal of Policy Modeling, 27, 839–851.10.1016/j.jpolmod.2005.05.003
   Web of Science ®Google Scholar
• Lee, C. G. (2009). Foreign direct investment, pollution and economic growth: Evidence from Malaysia. Applied Economics, 41, 1709–1716.10.1080/00036840701564376
   Web of Science ®Google Scholar
• Levine, R. (1997). Financial development and economic growth: Views and agendas. Journal of Economic Literature, 35, 688–726.
   Web of Science ®Google Scholar
• Levine, R. (2002). Bank-based or market-based financial systems: Which is better? Journal of Financial Intermediation, 11, 398–428.10.1006/jfin.2002.0341
   Web of Science ®Google Scholar
• Levine, R. (2005). Finance and growth: Theory and evidence. In A. Philippe & N. Steven (Eds.), Handbook of economic growth (pp. 865–934). Amsterdam: Elsevier.
   Google Scholar
• Levine, R., & Zervos, S. (1998). Stock markets, banks and economic growth. American Economic Review, 88, 537–558.
   Web of Science ®Google Scholar
• Liang, Q., & Teng, J.-Z. (2006). Financial development and economic growth: Evidence from China. China Economic Review, 17, 395–411.10.1016/j.chieco.2005.09.003
   Web of Science ®Google Scholar
• Liu, X., & Shu, C. (2002). The relationship between financial development and economic growth: Evidence from China. Studies in Economics and Finance, 20, 76–84.10.1108/eb028760
   Google Scholar
• Loayza, N., & Ranciere, R. (2006). Financial development, financial fragility, and growth. Journal of Money, Credit and Banking, 38, 1051–1076.10.1353/mcb.2006.0060
   Web of Science ®Google Scholar
• Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3–42.10.1016/0304-3932(88)90168-7
   Web of Science ®Google Scholar
• Madsen, J. B., & Ang, J. B. (2016). Finance-led growth in the OECD since the nineteenth century: How does financial development transmit to growth. Review of Economics and Statistics, 98, 552–572.
   Web of Science ®Google Scholar
• Masoud, N., & Hardaker, G. (2012). The impact of financial development on economic growth. Studies in Economics and Finance, 29, 148–173.10.1108/10867371211246830
   Google Scholar
• Massa, I. (2009). Stock markets in Africa: Bidding for growth amid global turmoil. London: Overseas Development Institute.
   Google Scholar
• Mun, H. W., Siong, E. C., & Thing, T. C. (2008). Stock market and economic growth in Malaysia: Casuality test. Asian Social Science, 4, 86–92.
   Google Scholar
• Nyasha, S., & Odhiambo, N. (2015). Economic growth and market-based financial systems: A review. Studies in Economics and Finance, 32, 235–255.10.1108/SEF-03-2014-0053
   Web of Science ®Google Scholar
• Odhiambo, N. (2008). Financial development in Kenya: A dynamic test of the finance-led growth hypotheses. Economic Issues, 13, 21–36.
   Google Scholar
• Omri, A., Daly, S., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics, 48, 242–252.10.1016/j.eneco.2015.01.008
   Web of Science ®Google Scholar
• Panopoulou, E. (2009). Financial variables and euro area growth: A non-parametric causality analysis. Economic Modelling, 26, 1414–1419.10.1016/j.econmod.2009.07.013
   Web of Science ®Google Scholar
• Pesaran, H. M., & Pesaran, B. (2009). Microfi t 5.0. Oxford: Oxford University Press.
   Google Scholar
• Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289–326.10.1002/(ISSN)1099-1255
   Web of Science ®Google Scholar
• Phillips, P., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75, 335–346.10.1093/biomet/75.2.335
   Web of Science ®Google Scholar
• Phiri, A. (2015). Asymmetric cointegration and causality effects between financial development and economic growth in South Africa. Studies in Economics and Finance, 32, 464–484.10.1108/SEF-01-2014-0009
   Web of Science ®Google Scholar
• Pindyck, R. S. (1984). Risk, inflation, and the stock market. The American Economic Review, 74, 335–351.
   Web of Science ®Google Scholar
• Raza, S. A., & Jawaid, S. T. (2014). Foreign capital inflows, economic growth and stock market capitalization in Asian countries: An ARDL bound testing approach. Quality & Quantity, 48, 375–385.10.1007/s11135-012-9774-4
   Web of Science ®Google Scholar
• Rodik, D. (2008). The real exchange rate and economic growth. Brookings Papers on Economic Activity, 2008, 365–437.
   Google Scholar
• Rodrik, D., & Velasco, A. (1999). Short-term capital flows (Working Paper No. 7364). NBER.10.3386/w7364
   Google Scholar
• Rousseau, P. (2003). Historical perspectives on financial development and economic growth. Federal Reserve Bank of St. Louis Review, 85, 81–106.
   Google Scholar
• Seetanah, B. (2008). Financial development and economic growth in an ARDL approach. Applied Economics Letter, 44, 43–50.
   Google Scholar
• Sehrawat, M., & Giri, A. (2015). Financial development and economic growth: Empirical evidence from India. Studies in Economics and Finance, 32, 340–356.10.1108/SEF-10-2013-0152
   Web of Science ®Google Scholar
• Shahbaz, M., Rehman, I., & Muzaffar, A. T. (2015). Re-visiting financial development and economic growth nexus: The role of capitalization in Bangladesh. South African Journal of Economics, 83, 452–471.10.1111/saje.12063
   Web of Science ®Google Scholar
• Singh, A., & Weisse, B. (1998). Emerging stock markets, portfolio capital flows and long-term economie growth: Micro and macroeconomic perspectives. World Development, 26, 607–622.10.1016/S0305-750X(98)00003-5
   Web of Science ®Google Scholar
• Soto, M. (2003). Taxing capital flows: An empirical comparative analysis. Journal of Development Economics, 72, 203–221.10.1016/S0304-3878(03)00074-9
   Web of Science ®Google Scholar
• Star Online. (2015). BNM report 2014: Malaysia to see volatile capital flows. Retrieved from http://www.thestar.com.my/business/business-news/2015/03/11/malaysia-to-see-volatile-capital-flows/
   Google Scholar
• Tsouma, E. (2009). Stock returns and economic activity in mature and emerging markets. The Quarterly Review of Economics and Finance, 49, 668–685.10.1016/j.qref.2008.02.002
   Google Scholar
• UNCTAD. (2008). World investment report 2008: Transnational corporations and infrastructure challenge. New York, NY: United Nations.
   Google Scholar
• UNCTAD. (2016). World investment report 2016: Investor nationality: Policy challenges. New York, NY: United Nations.
   Google Scholar
• Waheed, A. (2004). Foreign capital inflows and economic growth of developing countries: A critical survey of selected empirical studies. Journal of Economic Cooperation, 25(1), 1–36.
   Google Scholar
• Wongbangpo, P., & Sharma, S. (2004). Stock market and macroeconomic fundamental dynamic interactions: ASEAN-5 countries. Journal of Asian Economics, 13, 27–51.
   Google Scholar
• Yousif, K. (2002). Financial development and economic growth: Another look at the evidence from developing countries. Review of Financial Economics, 11, 131–150.10.1016/S1058-3300(02)00039-3
   Google Scholar
• Zivot, E., & Andrews, D. W. K. (2002). Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. Journal of Business & Economic Statistics, 20, 25–44.10.1198/073500102753410372
   Web of Science ®Google Scholar