CAPITAL MARKET DEEPENING AND ECONOMIC GROWTH IN BANGLADESH
CAPITAL MARKET DEEPENING AND ECONOMIC GROWTH IN BANGLADESH

Summary/Abstract: This paper examines the impact of capital market deepening on economic growth of Bangladesh using the time series data on market capitalization-GDP ratio, total market turnover-GDP ratio and Savings-GDP ratio over the period covering from the year 1991 to 2011. The economic results found by applying Ordinary Least Square shows that the capital market deepening has little contribution to the economic growth of the country. This is because of the low market turnover and relatively high savings rate that ultimately find its way to be invested somewhere else. The findings of this paper also indicates that there might be some other variables apart from the variables considered here that also affect the economic growth of the country.

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