<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The purpose of the study is to investigate the impact of stock market development on economic growth for nine developed European countries.</p>
<p>In many countries, the stock market (SM), is considered. one of the crucial elements for promoting sustainable economic growth and development. By analysing data from nine developed European countries over 21 years, from 2000 to 2020, including Germany, the United Kingdom, France, Italy, Spain, the Netherlands, Switzerland, Turkey, and Poland, this study seeks to determine the effect of the stock. market. on economic growth. The years 2021 and 2022 are not included due to the lack of data, mainly as a result of the pandemic period. The dataset, extracted from the World Bank database, is used to generate results by applying different econometric models such as OLS, OLS Robust, Fixed, and the Random Effect, which turned out to be more suitable in this study. According to research, macroeconomic factors such as stock. market development (SMD), and inflation (INF), have a significant positive impact while, domestic credit to the private sector (DC), has a negative significant impact on economic growth, in respective periods and countries. Therefore, new research on this topic could help better understand the stock market’s impact on economic growth, and new conclusions might greatly benefit developed European countries.</p>
</abstract>

The purpose of the study is to investigate the impact of stock market development on economic growth for nine developed European countries.
In many countries, the stock market (SM), is considered. one of the crucial elements for promoting sustainable economic growth and development. By analysing data from nine developed European countries over 21 years, from 2000 to 2020, including Germany, the United Kingdom, France, Italy, Spain, the Netherlands, Switzerland, Turkey, and Poland, this study seeks to determine the effect of the stock. market. on economic growth. The years 2021 and 2022 are not included due to the lack of data, mainly as a result of the pandemic period. The dataset, extracted from the World Bank database, is used to generate results by applying different econometric models such as OLS, OLS Robust, Fixed, and the Random Effect, which turned out to be more suitable in this study. According to research, macroeconomic factors such as stock. market development (SMD), and inflation (INF), have a significant positive impact while, domestic credit to the private sector (DC), has a negative significant impact on economic growth, in respective periods and countries. Therefore, new research on this topic could help better understand the stock market’s impact on economic growth, and new conclusions might greatly benefit developed European countries.

The Impact of Stock, Market. On Economic. Growth: Evidence from Developed European.Countries

SEEU Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

The purpose of the study is to investigate the impact of stock market development on economic growth for nine developed European countries.
In many countries,...

The Impact of Stock, Market. On Economic. Growth: Evidence from Developed European.Countries

Published Online: Dec 29, 2023

Page range: 191 - 202

DOI: https://doi.org/10.2478/seeur-2023-0081

Keywords
Stock market, economic growth, developed European countries, panel data, Random Effect

© 2023 Krenare Shahini Gollopeni et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Impact of Stock, Market. On Economic. Growth: Evidence from Developed European.Countries

Published Online: Dec 29, 2023

Page range: 191 - 202

DOI: https://doi.org/10.2478/seeur-2023-0081

KeywordsStock market, economic growth, developed European countries, panel data, Random Effect

© 2023 Krenare Shahini Gollopeni et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Stock market, economic growth, developed European countries, panel data, Random Effect