Stock Market & the Economy: Evidence from Philippines
DOI:
https://doi.org/10.33423/jabe.v20i2.326Keywords:
Business, Economics, Finance, Philippines, Stock MarketAbstract
This study reviews prior literature on the relationship between the stock market and the economy and conducts a simple analysis on the same empirically for Philippines. The study utilizes quarterly data from 2003 to 2015. Results show that increases in past quarter real GDP growth causes a 0.56 increase in the present quarter real GDP growth. In addition, increases in past quarter PSI index returns cause a 0.04 increase in real GDP growth in the present quarter. Moreover, the study identifies an inflation-GDP growth puzzle for Philippines. Results support the permanent income and the financial accelerator views.
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Published
2018-07-01
How to Cite
Jayasuriya, D. D. (2018). Stock Market & the Economy: Evidence from Philippines. Journal of Applied Business and Economics, 20(2). https://doi.org/10.33423/jabe.v20i2.326
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