Economic Strategy

Economic Strategy

A Comparative Study of the Impact of Capital Market Components on Economic Growth in Iran and Selected Countries

Document Type : Original Article

Authors
Mahdi Mahmood Robati 1
Keyhan Barzegar 2
Ali Ashraf Nazari 3
1 PhD student in Public Policy, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 Associate Professor, Faculty of Law, Theology and Political Sciences, Science and Research Branch, Islamic Azad University, Tehran, Iran.
3 Associate Professor, Faculty of Law and Political Sciences, University of Tehran, Iran
10.22034/es.2024.414684.1704
Abstract
It is important to find a common understanding of the drivers of capital market development as well as the potential impact that capital market development can have on economic growth and development. Based on this, this paper examines the comparative study of sub-components of the capital market, including gross domestic product, economic stability, financial policy, banking system and institutional investors, financial openness, protection of shareholders' rights and the rule of law in selected countries. It covers the period from 2000 to 2021, and while comparing the results between countries, the situation of Iran is also compared with other countries, which creates the basis for policy-making. The main modelling method in this paper is process and strategy. In order to investigate the development path of the capital market and the policy process for economic growth and development, a comparative comparison based on Beredy’s model is used. The results of presenting the findings of the comparative study in a comparative table, the model proposed by the researcher with the aim of developing the capital market of Iran is presented in the form of a suggested table at the end of the article.
Keywords
Capital Market
Economic Growth
Macroeconomic Policies
Development of Financial Sector
Power of Basic Institutions
اکبریان، رضا و حیدری‌پور، سید محسن (1388). بررسی تأثیر توسعه بازار مالی بر رشد اقتصادی در ایران طی سال‌های 1386-1345. پژوهشنامه اقتصادی، 9(34). 43-63.
بانک مرکزی جمهوری اسلامی ایران (1402). گزارش اقتصادی و ترازنامه.
خادم علیزاده، امیر (1392). بررسی نقش بازار سرمایه در رشد اقتصادی ایران با رویکرد اقتصاد خرد (سطح بنگاه-1390-1370). پژوهش‌های اقتصادی ایران، 18(54)، 93-118.‎
راستی، محمد (1388). بررسی رابطه توسعه مالی و رشد اقتصادی در کشورهای عضو اوپک: آزمون فروض پاتریک. بررسی‌های بازرگانی، (38)، 59-72.
شاه‌آبادی، ابوالفضل؛ مرادی، علی و نوروزی، میثم (1395). تأثیر توسعه بازار پول و سرمایه بر رشد ارزش‌افزوده بخش صنعت ایران با استفاده از روش تحلیل مؤلفه‌های اصلی. دوفصلنامه علمی مطالعات و سیاست‌های اقتصادی، 3(2)، 123-148.‎
صامتی، مجید و بهنود، مرجان (1391). تأثیر بی‌ثباتی اقتصادی بر توسعه انسانی در کشورهای منتخب آسیا. فصلنامه تحقیقات اقتصادی راه اندیشه، (15)، 53-68.
عرب، ‌آزاده؛ سرلک، احمد؛ قیاسی، مجتبی و شریف‌نژاد، مریم (1400). بررسی تأثیر توسعه مالی و ثبات مالی بر رشد اقتصادی ایران با استفاده از رهیافت گشتاورهای تعمیم یافته. پژوهش‌های اقتصادی (رشد و توسعه پایدار)، 82(21)، 65-83.‎
فرمان‌آرا، وحید؛ کمیجانی، اکبر؛ فرزین وش، اسداله؛ غفاری، فرهاد (1398). نقش بازار سرمایه در تأمین مالی و رشد اقتصادی (مطالعه موردی ایران و منتخبی از کشورهای در حال توسعه). اقتصاد مالی، 13(47)، 19-38.‎
قدمیاری، فروغ؛ رضایی، مبینا و رجایی، حسینعلی (1396). تأثیر توسعه مالی بر رشد اقتصادی (مقایسه کشورهای درحال‌توسعه، درحال‌توسعه نفتی و توسعه‌یافته. اولین همایش بین‌المللی برنامه‌ریزی اقتصادی، توسعه پایدار و متوازن منطقه‌ای. کردستان، ایران.
 
Adoms, F. U.; Yua, H.; Okaro, C. S. & Ogbonna, K. S. (2020). Capital market and economic development: A comparative study of three Sub-Saharan African emerging economies. American Journal of Industrial and Business Management, 10(5), 963-987.
Ake, B. (2010). The role of stock market development in economic growth: evidence from some Euronext countries. International Journal of Financial Research, 1(1), 14-20.
Anyanwu, J. C. (1993). Monetary Economics: Theory, Policy and Institution. Onitsha: Hybrid Publishers Limited.
Arestis, P.; Demetriades, P. O. & Luintel, K. B. (2001). Financial development and economic growth: the role of stock markets. Journal of money, credit and banking, 16-41.
Beck, T. & Levine, R. (2004). Stock markets, banks, and growth: Panel evidence. Journal of Banking & Finance, 28(3), 423-442.
Beck, T. (2011). Finance and Oil: Is there a resource curse in financial development?. European Banking Center Discussion Paper, (2011-004).
Bhutta, K. S. & Huq, F. (1999). Benchmarking ± best practices: an integrated approach. Benchmarking: An International Journal, 6(3), 254-268.
Bijlsma, M.; Van Ewijk, C. & Haaijen, F. (2014). Economic growth and funded pension systems.
Coşkun, Y.; Seven, Ü.; Ertuğrul, H. M. & Ulussever, T. (2017). Capital market and economic growth nexus: Evidence from Turkey. Central Bank Review, 17(1), 19-29.
Darrat, A. F. (1999). Are financial deepening and economic growth causally related? Another look at the evidence. International Economic Journal, 13(3), 19-35.
Devereux, M. B. & Smith, G. W. (1994). International risk sharing and economic growth. International economic review, 535-550.
Dhonte, Pierre & Shan Kapur. (1997). Toward a Market Economy: Structure of Governance. IMF working paper, (11).
Dittmar, R. & K. Yuan (2008). Do Sovereign Bonds Benefit Corporate Bonds in Emerging Markets?. Review of Financial Studies, 21(5), 1983-2014.
Djankov, S.; C. McLiesh & A. Shleifer (2007). Private Credit in 129 Countries. Journal of Financial Economics, 84(2), 299-329.
Dreger, C. & Reimers, H. E. (2013). Does euro area membership affect the relationship between GDP growth and public debt?. Journal of Macroeconomics, (38), 481-486.
Fincke, B. & Greiner, A. (2015). Public debt and economic growth in emerging market economies. South African Journal of Economics, 83(3), 357-370.
Fink, G.; Haiss, P. R. & Hristoforova, S. (2003). Bond markets and economic growth.
Fischer, S. (1993). The role of macroeconomic factors in growth. Monetory Economic, 32(3), 485-512.
Grigoli, F.; Herman, A. & Schmidt-Hebbel, K. (2018). Saving in the world. World Development, (104), 257-270.
Harris, R. D. (1997). Stock markets and development: A re-assessment. European Economic Review, 41(1), 139-146.
Heipertz, M. & A. Verdun. (2010). Ruling Europe, The Politics of the Stability and Growth Pact. Cambridge University Press. Cambridge.
Jhingan, M. L. (2005). Monetary Economics. Delhi: Vrinda Publications Ltd.
Kang, T. & K. Kim (2019). Push vs. Pull Factors of Capital Flows Revisited: A Cross-Country Analysis. KIEP Working Paper 19-01, Korea Institute for International Economic Policy, Seoul.
Kumar, M. & Woo, J. (2010). Public debt and growth.
La Porta, R.; F. Lopez-de-Silanes & A. Shleifer (2006). What Works in Securities Laws? Journal of Finance, 61(1), 1-32.
Laeven, L. (2014). The Development of Local Capital Markets: Rationale and Challenges. IMF Working Paper 14/234, International Monetary Fund, Washington, DC.
Larch, M.; Noord P. & Jonung, L. (2010). The stability and growth pact: lessons from the great recession. MPRA Paper, (27900), posted 9. January 2011- 19:30 UTC.
Levine, R. & Zervos, S. (1998). Stock markets, banks, and economic growth. American economic review, 537-558.
Levine, R. (1991). Stock markets, growth, and tax policy. The Journal of Finance, 46(4), 1445-1465.
Levine, R. (1997). Financial development and economic growth: views and agenda. Journal of economic literature, 35(2), 688-726.
Lim J. J. (2013). Institutional and Structural Determinants of Investment Worldwide. Policy Research Working Paper 6591, World Bank, Washington D.C.
Mishkin, F. S. (2007). The Economics of Money, Banking and Financial Markets. Boston, MA: Greg Tobin.
Mishra, P. K.; Das, K. B. & Pradhan, B. B. (2010). Foreign institutional investments and real economic growth in India: a causality test. International Research Journal of Finance and Economics, (41), 212-219.
Naceur, S. B. & Ghazouani, S. (2007). Stock markets, banks, and economic growth: Empirical evidence from the MENA region. Research in International Business and Finance, 21(2), 297-315.
Nordin, S. & Nordin, N. (2016). The impact of capital market on economic growth: a Malaysian outlook. International Journal of Economics and Financial Issues, 6(7), 259-265.
Nwaolisa, E. F.; Kasie, E. G. & Egbunike, C. F. (2013). The Impact of Capital Market on the Economic Growth of Nigerian Economy under Democratic Rule. Arabian Journal of Business and Management Review, (3), 53-62.
Obstfeld, M. (1992). Risk-taking, global diversification, and growth (No. w4093). National bureau of economic research.
Ong, L. & Sy, A. (2004). The Role of Mature Market Mutual Funds in Emerging Markets: Myth or Mayhem?.
Reinhart, C. M. & Rogoff, K. S. (2010). Growth in a Time of Debt. American economic review, 100(2), 573-578.
Rojas-Suarez, L. (2014). Towards Strong and Stable Capital Markets in Emerging Market Economies. BIS Paper 75, Bank for International Settlements, Basel, Switzerland.
Rose, P. S. & Marquis, M. H. (2009). Money and Capital Markets. New York: McGraw Hill.
Schclarek, A. (2004). Debt and economic growth in developing and industrial countries (No. 2005: 34). Working Paper.
Schumpeter, J. (1912). The Theory of Economic Development. Harvard University Press, Cambridge, MA.
Seven, Ü. & Yetkiner, H. (2016). Financial intermediation and economic growth: Does income matter?. Economic Systems, 40(1), 39-58.
Thumrongvit, P.; Kim, Y. & Pyun, C. S. (2013). Linking the missing market: The effect of bond markets on economic growth. International Review of Economics & Finance, (27), 529-541.
Vittas, D. (1998). Institutional investors and securities markets: which comes first? (Vol. 2032). World Bank Publications.
World Bank Group. (2019). Capital Markets Development. World Bank.
World Bank Group. (2020). Capital Markets Development: A Primer for Policymakers. World Bank.
Yu, J. S.; Hassan, M. K. & Sanchez, B. (2012). A re-examination of financial development, stock markets development and economic growth. Applied Economics, 44(27), 3479-3489.

  • Receive Date 10 September 2023
  • Revise Date 05 November 2023
  • Accept Date 13 November 2023