Work

Does Financial Market Development Stimulate Savings? Evidence From Emerging Stock Markets

Year: 1999

Type: article

Abstract: This paper examines the empirical relation between financial market development, as measured by the stock market, and gross private savings rates in 16 emerging markets over 1982‐1993. With data from all 16 countries, there is evidence of a significant positive relation between savings and stock market size and liquidity. When countries with outlying values for the stock market measures are excluded, however, all significance disappears. The results suggest that a growing or deepening stock market will not necessarily be associated with higher savings rates. (JEL E21, 016)

Source: Contemporary Economic Policy

DOI: 10.1111/j.1465-7287.1999.tb00689.x

Authors: CATHERINE BONSER‐NEAL, KATHRYN L DEWENTER

Institutions: Indiana University Indianapolis, Indiana University – Purdue University Indianapolis, University of Washington

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W2071894785

FWCI: 2.606

Cites: 26

Cited by: 28

Related to: 10