Does capital flows lead to stock market development and economic growth? An enquiry into the existing literature.

Author Details

Dr. Thushara George,

Assistant professor Department of Economics, St Teresa’s College Ernakulum, 682011

Abstract

Role of foreign capital inflows in stock market development and economic growth is a widely debated topic. This paper analyses the existing literature on the long-run short run linkage between stock market development and economic growth via the capital inflows. Equity market development is desirable and necessary for complete financial liberalization. At the same time, foreign investments with flexible exchange rate should be encouraged to foster both stock market and economic growth.

Keywords: Capital Flows, stock market, Economic Growth

Please cite this article as:

Please cite this article as: Dr. Thushara George  (2017). Does capital flows lead to stock market development and economic growth? An enquiry into the existing literature. International Journal of Recent Research and Applied Studies, 4, 5(18), 84-86.