The Relationship Between Stock Market Development And Economic Growth In Thailand
This paper aims to examine the relationship between stock market development and economic growth period of Hamburger crisis in case of developing country such as Thailand. The data set cover monthly time series data from 1999 to 2016, the data was divided into three periods, before crisis period from January 1999 to December 2006, during crisis from January 2007 to December 2008 and after crisis from January 2009 to December 2016. The study uses three proxies of stock market development, namely the stock market capitalization ratio, Total Value Trade and Stock Price Index, against GDP, Inflation rate and Foreign Direct Investment, proxies for economic growth. We employed ADF test and PP test to find integrating order of variables for this study. From integrating order of variables we find that some variables stationary at I(0) and some variables stationary at I(1). Using the Autoregressive Distributed Lag (ARDL) bounds testing approach for examine the relationship between stock market and economic growth in Thailand. The result show that there is relationship between stock market development and economic growth in Thailand for before crisis, during crisis and after crisis.
Keywords - Stock Market Development, Economic Growth, Hamburger crisis, ARDL bounds testing, Thailand