Determinants of stock market development: evidence from advanced and emerging markets in a long span Akcijų rinkos vystymosi veiksniai: išsivysčiusių ir besivystančių rinkų elgsenos pavyzdžių tyrimas ilguoju laikotarpiu

EVRİM MANDACI P., Aktan B., KURT GÜMÜŞ G., Tvaronavičiene M.

Business: Theory and Practice, vol.14, no.1, pp.51-56, 2013 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 14 Issue: 1
  • Publication Date: 2013
  • Doi Number: 10.3846/btp.2013.06
  • Journal Name: Business: Theory and Practice
  • Journal Indexes: Scopus
  • Page Numbers: pp.51-56
  • Keywords: Bank credits, FDI, Remittances, Stock market, SUR estimation
  • Dokuz Eylül University Affiliated: Yes


The paper analyses determinants of stock market development in thirty advanced and emerging countries within the period between 1960 and pre-financial global meltdown (2007). Our explanatory variables are foreign direct investment (FDI), remittances and bank credits to private sector. The application of SUR estimation disclosed that all variables had significant positive effects on market development measured by market capitalization. The obtained results unfolded the necessity for the countries to develop policies and regulations on facilitating FDI, remittances and bank credits.