The role of political instability in moderating the effect of stock exchange develoment toward economic growth

Abdelmu'ti Abdelra'ouf Bader, Majdi (2021) The role of political instability in moderating the effect of stock exchange develoment toward economic growth. Magister thesis, Universitas Brawijaya.

Abstract

"Abstract: Several studies discussed widely that stock exchange development increases the mobilization of idle savings in the economy and converts them into productive capital. Hence, stock exchange development is crucial in boosting economic growth. In addition, companies listed on the stock exchange are key players that play a vital role to boosts economic growth. However, stock exchange development cannot work alone in influencing economic growth. Political stability performs a pivotal role boosts economic growth by enhancing stock exchange development. Hence, the aim is to examine the impact of stock exchange development and firms characteristics on economic growth moderated by political instability. We applied time-series data from 1997-2019 and using the Unit root test, cointegration test, and error correction model to analyze the data. The findings showed that Palestine Securities Exchange development affected economic growth. In addition, political instability negatively moderates the relationship between stock exchange development and economic growth. Empirical results also showed that some of the sectors on the PSE contribute, and some had no contribution to economic growth. These findings imply that the PSE government authority should plan policies to boost the total value traded and market capitalization by listing more public equity companies in the Palestine securities exchange. Offer broader trading options for investors to promote the attractiveness of PSE. The government also should improve the industrial and investment sector's performance by reducing energy tariffs and offer incentives to invest in those sectors. Keywords: Stock Exchange development, Economic Growth, Political Instability, Sector Characteristics."

Item Type: Thesis (Magister)
Identification Number: 042102
Uncontrolled Keywords: Stock Exchange development, Economic Growth, Political Instability, Sector Characteristics
Subjects: 600 Technology (Applied sciences) > 658 General management
Divisions: S2/S3 > Doktor Ilmu Manajemen, Fakultas Ekonomi dan Bisnis
Depositing User: Unnamed user with username santoso
Date Deposited: 23 Oct 2021 04:54
Last Modified: 22 Feb 2022 08:29
URI: http://repository.ub.ac.id/id/eprint/185340
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