The stock market and domestic resource mobilization
Date
1995-01
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Abstract
Mobilization of savings still remains one of the key requisites of economic growth. Due to existing circumstances, generation of savings had to be predominantly sourced from the private sector and can be further enhanced through promoting financial development.
The stock markets represents one viable channel in which savings can be converted into productive investments. But, many stock markets remain under developed mainly, due to the direct and indirect adverse effects of financial repression and partly, a general environment of neglect.
Stock markets were found to exert a positive influence on saving rates of different economies, although a statistically minor one. The findings in this study strengthens the argument in favor of using stock markets to improve savings generation efforts in the different economies.