nep-fdg 2007-05-12 papers

on Financial Development and Growth

Issue of 2007‒05‒12
one paper chosen by
Iulia Igescu
Global Insight, GmbH

Testing for Granger causality between stock prices and economic growth By Foresti, Pasquale

Testing for Granger causality between stock prices and economic growth

By:	Foresti, Pasquale
Abstract:	This paper has focused on the relationship between stock market prices and growth. A Granger-causality analysis has been carried out in order to assess whether there is any potential predictability power of one indicator for the other. The conclusion that can be drawn is that stock market prices can be used in order to predict growth, but the opposite it is not true.
JEL:	C22 E37
Date:	2006
URL:	http://d.repec.org/n?u=RePEc:pra:mprapa:2962&r=fdg

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