Volume 6, Issue 1, February 2018, Page: 1-6
Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach
Md. Shakhawat Hossain, Department of Statistics, University of Chittagong, Chittagong, Bangladesh
Md. Rokonuzzaman, Department of Statistics, University of Chittagong, Chittagong, Bangladesh
Received: Oct. 30, 2017;       Accepted: Nov. 23, 2017;       Published: Jan. 12, 2018
DOI: 10.11648/j.sjams.20180601.11      View  1619      Downloads  110
Abstract
In this study, the impact of stock market, trade and credit by bank on economic growth for nine Latin American countries are examined. Fixed effect panel model with dummy variable approach is used in this research work. Significant Hausman test statistic conferred for fixed effect panel model to analyze this dataset. The inflation rate, import and credit by banking sector have negative impact on GDP growth whereas the rest of the variables, exports, stock market, board money, credit by private sector and interest rate have positive contribution to the GDP growth. Only interest and credit by banking sector are significant. The GDP for Chile is significantly but GDP for all other countries are not significantly different from that of Argentina. In this panel data analysis, 25% variation of GDP can be explained by the independent variables considered in the model.
Keywords
Panel Data, Hausman Test, Fixed Effect Dummy Variable Model, GDP, Stock Market, Trade
To cite this article
Md. Shakhawat Hossain, Md. Rokonuzzaman, Impact of Stock Market, Trade and Bank on Economic Growth for Latin American Countries: An Econometrics Approach, Science Journal of Applied Mathematics and Statistics. Vol. 6, No. 1, 2018, pp. 1-6. doi: 10.11648/j.sjams.20180601.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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