Stock Returns and Output Growth in Emerging and Advanced Economies

This paper studies the correlation between output growth and lagged stock returns in a panel of emerging market economies and advanced economies. It finds that the correlation is as strong in emerging market economies as in advanced economies. Asset prices therefore contain valuable information to f...

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Bibliographic Details
Main Author: Mauro, Paolo
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2000
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Stock Returns and Output Growth in Emerging and Advanced Economies  |c Paolo Mauro 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2000 
300 |a 34 pages 
651 4 |a United States 
653 |a Institutional Investors 
653 |a Stock exchanges 
653 |a Stocks 
653 |a Pension Funds 
653 |a Finance 
653 |a Market capitalization 
653 |a Financial institutions 
653 |a Financial Instruments 
653 |a Production 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Production; Economic theory 
653 |a International Financial Markets 
653 |a Macroeconomics: Production 
653 |a Non-bank Financial Institutions 
653 |a Financial markets 
653 |a Emerging and frontier financial markets 
653 |a Stock markets 
653 |a Investments: Stocks 
653 |a Financial Markets and the Macroeconomy 
653 |a Financial services industry 
653 |a Macroeconomics 
653 |a Investment & securities 
653 |a Finance: General 
653 |a Production growth 
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520 |a This paper studies the correlation between output growth and lagged stock returns in a panel of emerging market economies and advanced economies. It finds that the correlation is as strong in emerging market economies as in advanced economies. Asset prices therefore contain valuable information to forecast output also in emerging market economies. Moreover, the paper finds that the strength of the correlation between output growth and lagged stock returns is significantly related to a number of stock market characteristics, such as the number of listed domestic companies and initial public offerings and, especially, a high market capitalization to GDP ratio and English legal origin