The impact of stock market development and banks on economic growth for SAARC countries: A panel analysis Hossain Md. Shakhawat*, Mahmood-Ul-Hasan*, Nobi Mohammad Nur**, Rokonuzzaman Md.* *Department of Statistics, Stockholm University, Stockholm, Sweden **Department of Economics, Swedish University of Agricultural Sciences, Uppsala, Sweden Online published on 7 September, 2012. Abstract The aim of this study is to determine the effect of stock market development and banks on the economic growth in SAARC countries. A random effect panel model is fitted and it fits the data well. It is observed that market capitalization and domestic credit to private sector have significant positive contribution to the economic growth (GDP) for the sampled SAARC countries whereas domestic credit to banking sector has negative contribution. Top Keywords GDP, Market Capitalization, Banking sector, Private sector, Panel analysis, random effect. Top |