Do Stock Index Futures Affect Economic Growth? Evidence from 32 Countries

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2018-01-26
Şendeniz Yüncü, İlkay
Aydoğan, Kürşat
This article investigates the relationship between stock index futures markets development and economic growth using time-series methods for 32 developed and developing countries. Evidence of cointegration between stock index futures and real economy in 29 countries suggests the presence of co-movements among the variables, indicating long-run stationarity in those countries. Our findings show that there is Granger-causality from stock index futures markets development to economic growth for middle-income countries with relatively low real per capita GDP, and Granger-causality in the reverse direction for the countries with high real per capita GDP. Variance decomposition and impulse-response function (IRF) analyses results support the existence of a relationship between stock index futures and real economy.
Emerging Markets Finance and Trade

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Citation Formats
İ. Şendeniz Yüncü and K. Aydoğan, “Do Stock Index Futures Affect Economic Growth? Evidence from 32 Countries,” Emerging Markets Finance and Trade, pp. 410–429, 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38756.