8,211
Views
12
CrossRef citations to date
0
Altmetric
Research Article

Analysing the macroeconomic drivers of stock market development in the Philippines

ORCID Icon & | (Reviewing Editor)
Article: 1451265 | Received 29 Sep 2017, Accepted 08 Mar 2018, Published online: 22 Mar 2018

References

  • Abdalla, I., & Murinde, V. (1997). Exchange rate and stock price interactions in emerging financial markets: Evidence on India, Korea, Pakistan and the Philippines. Applied Financial Economics, 7(1), 25–35.10.1080/096031097333826
  • Adjasi, C. K. D., & Biekpe, N. B. (2006). Stock market development and economic growth: The case of selected african countries. African Development Review, 18(1), 144–161.10.1111/afdr.2006.18.issue-1
  • Akhtar, M. L. (2002). Issues involved in stock exchange demutualization. In S. Akhtar (ed), Demutualization of stock exchanges: Problems, solutions and case studies (Chapter 1, pp. 1–32). Manila: Asian Development Bank.
  • Alinsunurin, M. L. (2002). Demutualization of the Philippine Stock Exchange. In S. Akhtar (ed.), Demutualization of stock exchanges: Problems, solutions and case studies (Chapter 17, pp. 299–309). Manila: Asian Development Bank.
  • ASEAN. (2015). Retrieved May 5, 2015, from http://www.asean.org/asean/about-asean
  • Atje, R., & Jovanovic, B. (1993). Stock market and development. European Economic Review, 37, 623–640.
  • Azariadas, C., & Smith, B. (1996). Private information, money and growth: Indeterminacies, fluctuations, and the Mundell-Tobin effect. Journal of Economic Growth, 1, 309–332.10.1007/BF00141041
  • Baltagi, B. H., Demetriades, P. O., & Law, S. H. (2009). Financial development and openness: Evidence from panel data. Journal of Development Economics, 89(2), 285–296.10.1016/j.jdeveco.2008.06.006
  • Barnes, M., Boyd, J. H., & Smith, B. D. (1999). Inflation and asset returns. European Economic Review, 43, 737–754.10.1016/S0014-2921(98)00090-7
  • Bayar, Y. (2016). Macroeconomic determinants of stock market development: Evidence from Borsa Istanbul. Financial Studies, 1(2016), 69–89.
  • Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, inequality and the poor. Journal of Economic Growth, 12(1), 27–49.10.1007/s10887-007-9010-6
  • Ben Naceur, S., Ghazouani, S., & Omran, M. (2007). The determinants of stock market development in the Middle-Eastern and North African region. Managerial Finance, 33(7), 477–489.10.1108/03074350710753753
  • Bencivenga, V. R., Smith, B. D., & Starr, R. M. (1996). Equity markets, transactions costs, and capital accumulation: An illustration. World Bank Economic Review, 10(2), 241–265.10.1093/wber/10.2.241
  • Bhide, A. (1993). The hidden costs of stock market liquidity. Journal of Financial Economics, 34, 1–51.
  • Billmeier, A., & Massa, I. (2009). What drives stock market development in emerging markets – Institutions, remittances, or natural resources? Emerging Markets Review, 10, 23–35.10.1016/j.ememar.2008.10.005
  • Boyd, J. H., Levine, R., & Smith, B. D. (1996). Inflation and financial market performance (Manuscript). Federal Reserve Bank of Minneapolis: Manuscript.10.26509/frbc-wp
  • Boyd, J. H., Levine, R., & Smith, B. D. (2001). The impact of inflation on financial market performance. Journal of Monetary Economics, 47, 221–248.10.1016/S0304-3932(01)00049-6
  • Boyd, J. H., & Smith, B. D. (1998). Capital market imperfections in a monetary growth model. Economic Theory, 11, 241–273.10.1007/s001990050187
  • Braun, M., & Raddatz, C. (2005). Trade liberalization and the politics of financial development (World Bank Policy Research Working Papers 3517). Washington, DC: World Bank.10.1596/prwp
  • Breeden, D. T. (1979). An intertemporal asset pricing model with stochastic consumption and investment opportunities. Journal of Financial Economics, 7(3), 265–296.10.1016/0304-405X(79)90016-3
  • Calvo, G. A., Leiderman, L., & Reinhart, C. M. (1993). Capital inflows and real exchange rate appreciation in Latin America. IMF Staff Papers, 40(1), 108–151.
  • Carp, L. (2012). Can stock market development boost economic growth? Empirical evidence from emerging markets in Central and Eastern Europe. Procedia Economics and Finance, 3, 438–444.10.1016/S2212-5671(12)00177-3
  • Cherif, M., & Gazdar, K. (2010). Macroeconomic and institutional determinants of stock market development in MENA region: New results from a panel data analysis. International Journal of Banking and Finance, 7(1), 139–159.
  • Choi, S., Smith, B., & Boyd, J. (1996). Inflation, financial markets, and capital formation. Federal Reserve Bank of St. Louis Review, 78, 9–35.
  • Chou, W. L. (2000). Exchange rate variability and China's exports. Journal of Comparative Economics, 28, 61–79.10.1006/jcec.1999.1625
  • Claessens, S., Klingebiel, D., & Schmukler, S. L. (2001). FDI and stock market development: Complements or substitutes? Washington: World Bank.
  • Cochrane, J. H. (1991). A simple test of consumption insurance. Journal of Political Economy, 99(5), 957–976.10.1086/261785
  • De los Angeles, E. (1995). Rules on disclosure and enforcement in the Philippines. Pacific Rim Law and Policy Journal, 4(3), 691–730.
  • DeAngelo, H., & Rice, E. (1983). Anti-takeover amendments and stockholder wealth. Journal of Financial Economics, 11, 329–359.10.1016/0304-405X(83)90016-8
  • Deb, S. G., & Mukherjee, J. (2008). Does stock market development cause economic growth? A time-series analysis for the Indian economy. International Research Journal of Finance and Economics, 21, 142–149.
  • Demirgüç-Kunt, A., & Levine, R. (1996). Stock markets, corporate finance, and economic growth: An overview. The World Bank Economic Review, 10(2), 223–239.10.1093/wber/10.2.223
  • Do, Q. T., & Levchenko, A. A. (2007). Comparative advantage, demand for external finance, and financial development. Journal of Financial Economics, 86(3), 796–834.10.1016/j.jfineco.2006.11.004
  • Dornbusch, R., & Fisher, S. (1980). Exchange rates and the current account. American Economic Review, 70, 960–971.
  • Elliot, G., Rothenberg, T. J., & Stock, H. (1996). Efficient tests for an autoregressive unit root. Econometrica, 64, 813–836.10.2307/2171846
  • El-Nader, H. M., & Alraimony, A. D. (2013). The macroeconomic determinants of stock market development in Jordan. International Journal of Economics and Finance, 5(6), 91–103.
  • El-Wassal, A. K. (2005). Understanding the growth in emerging stock markets. Journal of Emerging Market Finance, 4, 227–261.10.1177/097265270500400302
  • Fama, E. F. (1965). The behaviour of stock-market prices. The Journal of Business, 38(1), 34–105.10.1086/jb.1965.38.issue-1
  • Frederick, S., & Gereffi, G. (2016). The Philippines in the electronics and electrical global value chain. Retrieved September 19, 2016, from http://www.cggc.duke.edu/pdfs/2016_Philippines_Electronics_Electrical_Global_Value_Chain_Executive_Summary.pdf
  • Garcia, V. F., & Liu, L. (1999). Macroeconomic determinants of stock market development. Journal of Applied Economics, 2, 29–59.
  • Gavin, M. (1989). The stock market and exchange rate dynamics. Journal of International Money and Finance, 8, 181–200.10.1016/0261-5606(89)90022-3
  • Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income. Journal of Political Economy, 98(5, Part 1), 1076–1107.10.1086/261720
  • Greenwood, J., & Smith, B. (1997). Financial markets in development, and the development of financial markets. Journal of Economic Dynamics and Control, 21(1), 145–181.10.1016/0165-1889(95)00928-0
  • Hausmann, R., & Fernández-Arias, E. (2000a, April). Is FDI a safer form of financing? (Inter-American Development Bank Working Paper 416).
  • Hausmann, R., & Fernández-Arias, E. (2000b, April). Foreign direct investment: Good cholesterol? (Inter-American Development Bank Working Paper 417).
  • Ho, S. Y. (2017). The macroeconomic determinants of stock market development: Evidence from South Africa (MPRA Paper 76493). München: University Library of Munich.
  • Ho, S. Y. (in press). The macroeconomic determinants of stock market development in Malaysia: An empirical analysis. Global Business and Economics Review.
  • Ho, S. Y., & Iyke, N. B. (2017). Determinants of stock market development: A review of the literature. Studies in Economics and Finance, 34(1), 143–164.10.1108/SEF-05-2016-0111
  • Ho, S. Y., & Odhiambo, N. M. (2015). Stock market development in the Philippines: Past and present. Philippine Journal of Development, 41(1/2), 135.
  • Huybens, E., & Smith, B. (1998). Financial market frictions, monetary policy, and capital accumulation in a small open economy. Journal of Economic Theory, 81, 353–400.10.1006/jeth.1997.2372
  • Huybens, E., & Smith, B. (1999). Inflation, financial markets, and long-run real activity. Journal of Monetary Economics, 43, 283–315.10.1016/S0304-3932(98)00060-9
  • IFS. (2017). Washington, DC: International Monetary Fund. Retrieved April, 21, 2017, from http://www.easydata.co.za/data/dimensionnode/IFS-TREE_3/
  • IMF. (2004). Philippines: Financial sector assessment program – IOSCO objectives and principles of securities regulation assessment (IMF Country Report No. 04/62). Washington, DC: Author.
  • Jeffus, W. (2004). FDI and stock market development in selected Latin American countries. International Finance Review, 5, 35–44.10.1016/S1569-3767(05)05003-X
  • Jensen, M. C., & Murphy, K. J. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98(2), 225–264.10.1086/261677
  • Jin, C. (2006). Can openness be an engine of sustained high growth rates and inflation? Evidence from Japan and Korea. International Review of Economics and Finance, 15, 228–240.10.1016/j.iref.2004.03.005
  • Jorion, P. (1991). The pricing of exchange rate risk in the stock market. Journal of Financial and Quantitative Analysis, 26, 361–376.
  • Kim, D. H., Lin, S. C., & Suen, Y. B. (2011). Nonlinearity between trade openness and economic development. Review of Development Economics, 15, 279–292.10.1111/rode.2011.15.issue-2
  • Kurach, R. (2010). Stock market development in CEE countries–the panel data analysis. Ekonomika, 89.
  • Levine, R. (1991). Stock markets, growth, and tax policy. Journal of Finance, 46(4), 1445–1465.10.1111/j.1540-6261.1991.tb04625.x
  • Levine, R. (1997). Financial development and economic growth: Views and agenda. Journal of Economic Literature, 35, 688–726.
  • Levine, R. (2005). Finance and growth: Theory and evidence. In P. Aghion & S. Durlauf (eds.), Handbook of economic growth (1 ed., Vol. 1, Number 1). Elsevier.
  • Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: Causality and causes. Journal of Monetary Economics, 46(1), 31–77.10.1016/S0304-3932(00)00017-9
  • Levine, R., & Zervos, S. (1998). Stock markets, banks, and economic growth. American Economic Review, 88(3), 537–558.
  • Lintner, J. (1965). The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets. The Review of Economics and Statistics, 13–37.10.2307/1924119
  • Ma, C. K., & Kao, G. W. (1990). On exchange rate changes and stock price reactions. Journal of Business Finance and Accounting, 17(3), 441–449.
  • Malik, I. A., & Amjad, S. (2013). Foreign direct investment and stock market development in Pakistan. Journal of International Trade Law and Policy, 12(3), 226–242.10.1108/JITLP-02-2013-0002
  • Marques, L. M., Fuinhas, J. A., & Marques, A. C. (2013). Does the stock market cause economic growth? Portuguese evidence of economic regime change. Economic Modelling, 32, 316–324.10.1016/j.econmod.2013.02.015
  • Merton, R. C. (1973). Theory of rational option pricing. The Bell Journal of Economics and Management Science, 141–183.10.2307/3003143
  • Merton, R. C., & Bodie, Z. (1995). A conceptual framework for analyzing the financial environment. In D. B. Crane, K. A. Froot, S. P. Mason, A. F. Perold, R. C. Merton, Z. Bodie, … P. Tufano (Eds.), The global financial system: A functional perspective (pp. 3–31). Boston, MA: Harvard Business School Press.
  • Merton, R. C., & Bodie, Z. (2004). The design of financial systems: Towards a synthesis of function and structure (NBER Working Paper No. 10620). Cambridge: NBER.
  • Newbery, D., & Stiglitz, J. (1984). Pareto inferior trade. Review of Economic Studies, 51, 1–12.10.2307/2297701
  • Niroomand, F., Hajilee, M., & Al Nasser, O. M. (2014). Financial market development and trade openness: Evidence from emerging economies. Applied Economics, 46(13), 1490–1498.10.1080/00036846.2013.866207
  • Obstfeld, M. (1994). Risk taking, global diversification and growth. American Economic Review, 84, 1310–1329.
  • Perron, P. (1997). Further evidence on breaking trend functions in macroeconomic variables. Journal of Econometrics, 80(2), 355–385.10.1016/S0304-4076(97)00049-3
  • Pesaran, M. H., & Shin, Y. (1999). An autoregressive distributed lag modelling approach to cointegration analysis. In S. Strom (ed.), Econometrics and economic theory in the 20th century: The Ragnar Frisch Centennial Symposium (Chap. 11). Cambridge: Cambridge University Press.
  • Pesaran, M. H., Shin, Y., & Smith, R. J. (1996). Testing for the existence of a long-run relationship (DAE Working Paper No. 9622).
  • Pesaran, M. H., Shin, Y. C., & Smith, R. (2001). Bound testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289–326.10.1002/(ISSN)1099-1255
  • Phylaktis, K., & Ravazzolo, F. (2005). Stock prices and exchange rate dynamics. Journal of International Money and Finance, 24(7), 1031–1053.10.1016/j.jimonfin.2005.08.001
  • PSE. (2000). The Philippine stock exchange 2000 annual report, the Philippines.
  • PSE. (2001). The Philippine stock exchange 2001 annual report, the Philippines.
  • PSE. (2002). The Philippine stock exchange 2002 annual report, the Philippines.
  • PSE. (2003). The Philippine stock exchange 2003 annual report, the Philippines.
  • PSE. (2004). The Philippine stock exchange 2004 annual report, the Philippines.
  • PSE. (2005). The Philippine stock exchange 2005 annual report, the Philippines.
  • PSE. (2006). The Philippine stock exchange 2006 annual report, the Philippines.
  • PSE. (2007). The Philippine stock exchange 2007 annual report, the Philippines.
  • PSE. (2008). The Philippine stock exchange 2008 annual report, the Philippines.
  • PSE. (2009). The Philippine stock exchange 2009 annual report, the Philippines.
  • PSE. (2010). The Philippine stock exchange 2010 annual report, the Philippines.
  • PSE. (2011). The Philippine stock exchange 2011 annual report, the Philippines.
  • PSE. (2012). The Philippine stock exchange 2012 annual report, the Philippines.
  • PSE. (2013). The Philippine stock exchange 2013 annual report, the Philippines.
  • PSE. (2014). The Philippine stock exchange 2014 annual report, the Philippines.
  • PSE. (2015). Retrieved April 3, 2016, from http://pse.com.ph/corporate/home.html
  • Rajan, R. G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69, 5–50.10.1016/S0304-405X(03)00125-9
  • Raza, S. A., Jawaid, S. T., Afshan, S., & Karim, M. Z. A. (2015). Is stock market sensitive to foreign capital inflows and economic growth? Evidence from Pakistan. Journal of Chinese Economic and Foreign Trade Studies, 8(3), 142–164.10.1108/JCEFTS-03-2015-0012
  • Rhee, G. S., & Wang, J. (2009). Foreign institutional ownership and stock market liquidity: Evidence from Indonesia. Journal of Banking and Finance, 33, 1312–1324.10.1016/j.jbankfin.2009.01.008
  • Ross, S. A. (1976). The arbitrage theory of capital asset pricing. Journal of Economic Theory, 13(3), 341–360.10.1016/0022-0531(76)90046-6
  • SEC. (2015). Reaping the benefits of reorganization: The Securities and Exchange Commission at 67. Retrieved April 9, 2015, from http://www.sec.gov.ph/aboutsec/annualreport/annualreport.html
  • Sehrawat, M., & Giri, A. K. (2016). Financial development and poverty reduction in India: An empirical investigation. International Journal of Social Economics, 43(2), 106–122.10.1108/IJSE-01-2014-0019
  • Shan, J. Z., Morris, A. G., & Sun, F. (2001). Financial development and economic growth: An egg-and-chicken problem? Review of International Economics, 9(3), 443–454.10.1111/roie.2001.9.issue-3
  • Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425–442.
  • Stiglitz, J. E. (1985). Credit markets and the control of capital. Journal of Money, Credit, Banking, 17(2), 133–152.10.2307/1992329
  • Stulz, R. (1981a). A model of international asset pricing. Journal of Financial Economics, 9(4), 383–406.10.1016/0304-405X(81)90005-2
  • Stulz, R. (1981b). On the effects of barriers to international investment. The Journal of Finance, 36(4), 923–934.10.1111/j.1540-6261.1981.tb04893.x
  • Şükrüoğlu, D., & Nalin, H. T. (2014). The macroeconomic determinants of stock market development in selected European countries: Dynamic panel data analysis. International Journal of Economics and Finance, 6(3), 64–71.
  • Svaleryd, H., & Vlachos, J. (2002). Markets for risk and openness to trade: How are they related? Journal of International Economics, 57, 369–395.10.1016/S0022-1996(01)00153-2
  • Visda, M. F. V., Crisostomo, R. G. R., & Padilla, S. L. (2013). Philippines stock market in perspective. Conference Proceedings of the 12th National Convention on Statistics. Mandaluyong City, the Philippines, 1–2 October 2013.
  • WDI. (2016). Washington DC: World Bank. Retrieved April 24, 2016, from http://data.worldbank.org/data-catalog/world-development-indicators
  • WFE. (2014). Retrieved October 10, 2014, from http://www.world-exchanges.org
  • WFE. (2015). Retrieved April 20, 2015, from http://www.world-exchanges.org
  • WFE. (2017). Retrieved April 21, 2017, from http://www.world-exchanges.org
  • World Bank. (1992). Philippines capital market study (Report No. 10053PH). Washington, DC: World Bank.
  • Yartey, C. A. (2007). Well-developed financial intermediary sector promotes stock market development: Evidence from Africa. Journal of Emerging Market Finance, 6(3), 269–289.10.1177/097265270700600303
  • Yartey, C. A. (2010). The institutional and macroeconomic determinants of stock market development in emerging economies. Applied Financial Economics, 20(21), 1615–1625.10.1080/09603107.2010.522519