Abstract

This paper examines the causality relationship between stock market development and economic growth in Canada and Australia based on the time series data for the period of 1981 Q3 to 2012 Q3. The results of Granger causality test suggest the causality between stock market development and economic growth in Canada but it is not the case in Australia. The results indicate that stock market and economic growth has long-run relationship and that the stock market development does help improve the future growth in some developed countries.

 

This work is licensed under a Creative Commons Attribution 4.0 License.