Stock markets and development

摘要: This paper asks if financial development (especially stock-market development) affects the level and/or growth rate of economic activity. It finds a substantial effect on both. Current wisdom suggests that effects intermediation could be either permanent or transitory. For instance, Greenwood-Jovanovic (1990) (henceforth GJ) model has an ‘AK’ stucture, with no diminishing returns to reproducible factor, and permanent, exogenous improvement in structure would cause increase growth. ’ On other hand, factor did diminish, better lead only effects. Since one should not priori exclude effects, we shall look for Our search will use GJ model; our rely amended version Mankiw, Romer Weil ( 1992) MRW) structure.