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Stock Market Development and Economic Growth:<br />

Case Study in Malaysia<br />

Nur Farhana binti Mohamad Rapi<br />

Supervisor: Encik Muhammad Najit bin Sukemi<br />

Bachelor of Economics (Natural Resources)<br />

School of Social and Economic Development<br />

Interactions between stock market and economic capital are important in driving<br />

economic growth. Global economic impacts, political and social sites within and outside<br />

the country have influence in influencing the local money market and thus affecting the<br />

country's economic growth. Thus, this study was carried out to look at the relationship<br />

between stock market capitalization and economic growth and its effect on each other in<br />

the short and long term. The Auto-Regressive Lagrange Model (ARDL) approach is based<br />

on annual data on stock market capitalization and economic growth for 30 years from<br />

1987 to 2016. The results showed significant relationship between economic growth and<br />

stock market capitalization in the short and long term. Overall, stock market capitalization<br />

is an important indicator in influencing economic growth.<br />

1491 | UMT UNDERGRADUATE RESEARCH DAY 2018

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