Economic growth, national competitiveness, and stock retrun

• Main Authors: Wang, Yen Wen, 王彥文
• Other Authors: Chow, Edward
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/78421659090445948120

碩士 === 國立政治大學 === 財務管理研究所 === 100 === It is wide believed that the economic growth is good to stockholders, but there still exist some arguments about the positive relationship between the economic growth and stock market returns. We prove that the economic growth has positive effect on the stock market returns. As a result, the stockholders could use the economic index to choose their target market to earn return. We find that the stock market could only reflect the short term condition of the country and could not reflect the long term accumulation of a country. That is, the national competitiveness could not reflect on the stock market return for stockholders in the long term. Otherwise, we also find that the capital formation and productivity are significantly positive to the stock market returns. We use the real GDP growth rate as the economic growth proxy and the national competitiveness rank to measure the national competitiveness from IMD competitiveness center. The time period of data is from 1997~2010. Fifty countries included in our sample.