Equity market growth boosts economy in emerging markets, study finds.
The study looked at how the stock market affects economic growth in emerging countries from 1995 to 2012. They used different methods to analyze the relationship between stock market development and GDP growth. The results showed that a strong stock market leads to higher economic growth. Foreign investment and trade also have a positive impact on growth, while factors like investment ratio, exchange rates, and inflation don't have as much of an effect.