Institutional Determinants of Stock Market Development in European Union Transition Economies

Authors: 
Yilmaz Bayar
JEL codes: 
C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series, G10 - General, G28 - Government Policy and Regulation, O43 - Institutions and Growth, O52 - Europe.
Abstract: 
Stock markets have become an important market for long run fund flows between savers and investors and also a determinant of economic growth with the emergence of endogenous growth theories. This study investigates the impact of institutional development on stock market development in 8 European Union transition economies during 2002-2013 period employing panel regression. We found that political stability, regulatory quality, rule of law and control of corruption had positive impact on stock market development.
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