| Summary: | 博士 === 國立中正大學 === 財務金融系研究所 === 104 === The stock market crisis trends to be followed by the slow-down of economic growth historically. However, the link between the stock market crisis and economic growth has never been explored in the finance literature. We collect 74 market indexes and macroeconomic data from 1970 to 2010 to empirically investigate the impact of the stock market crisis on the economic growth and its components. By using a variety of indicators of stock market crisis constructed in this paper, our empirical results consistently show that stock market crises significantly slow down the economic growth for the whole sample countries all over the world, especially for the developed countries. Our empirical results also show that economic slow-down are due to the decline in consumption, investment, and trade, especially consumption. The government spending of growth components, however, is insignificant. These findings imply that consumption stimulate policies are the most effective policies to mitigate the adverse impact of stock market financial crises. The other government policies for investment, export, and import are also auxiliary and important.
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