The Effects of Government Expenditure, Liquidity and Market Structure on Financial Development of Stock Market
Volume 14, Issue 53, Summer 2014, Pages 109-142
Mahdiye Akbary Roshan, Abbas i Shaker
Abstract This study explores the effects of liquidity, government expenditure and market structure on the financial development of stock market. Analysis on seasonal data (2001/2-2011/4) is performed by using Vector Autoregressive model. Results of Granger Causality test show a strong causal relationship from government expenditures, liquidity and market structure on financial development of stock market. Also, the analysis of Impulse-Response function indicates a statistically positive and significant effect of market structure shock on financial development index for 5 terms. However, government expenditures and liquidity growth shock don’t have any statistically significant effect on it. Also, results of variance decomposition show that market structure shocks explain 48 percent of variance in financial development index, and 34 percent of variance of itself, in the long-run. However, liquidity and government expenditures growth don’t show any statistically significant effect.
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Volume 6, Issue 20, Spring 2006, Pages 95-129
Abbas Shakeri, Fereydoun Salimi
Abstract
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Volume 5, Issue 17, Summer 2005, Pages 11-38
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Abstract