Stock Market And Economic Growth:A Comparative Study

The relationship between stock market development and economic growth has been the most interesting research subject among economy and financial sectors.Most empirical analysis shows that economic growth can promote the development of the stock market,while the stock market can also enhance the further economic growth in return.Therefore,there is a positive correlation between them.As an important part of the modern financial market,the stock market is one of the significant instruments to promote the reform of the economic system and improve the market mechanism.The present paper takes the United States,China and South Africa stock market and economic situation as an example to study the internal relationship between the stock market and the economic growth of these three different economies from the aspects of literature theory and empirical analysis.According to the specific situation of each country,this paper comes to the conclusion,and put forward relevant suggestions.In this paper,the stock index daily closing price of the yield is taken as a variable,the data was collected from the stock institutions of the three countries and conducted the descriptive statistics analysis of the data.The research results are obtained from data processing through unit root test,cointegration test,Granger causality correlation analysis and impulse response analysis.The analysis of the results of the data shows that there is a strong correlation between the U.S.stock market and economic growth,while there is a weak and effective correlation between the South Africa stock market and economic growth.However,the relevance between China's stock market and economic growth is not clear,which is not quite in line with the existing laws of economic development.Consequently,according to the above-mentioned research and analysis,the thesis puts forward some related suggestions to improve the stock market in China.