The Impact of Capital Market Development and Economic Growth on Poverty
Subject Areas :
BAHMAN khanalizadeh
1
(
PhD Student in Financial Economics, Department of Economics, Zanjan Branch, Islamic Azad University, Zanjan, Iran
)
Keywords: Iran, gross domestic product, Gini Coefficient, Stock market, ARDL test,
Abstract :
Economic growth and poverty reduction have always been the most important political and economic goals of countries. Because poverty has always been one of the unfavorable economic and social phenomena of different societies throughout human history and is now recognized as one of the major problems of world societies. But one of the most important ways to fight poverty is to increase GDP, which can reduce poverty and income inequality in society, but achieving economic growth requires the use of various factors such as capital, manpower, energy and .... Therefore, paying more attention to financial markets, including the stock market and securities, which can be one of the important tools for financing institutions and enterprises, will certainly be able to increase GDP and ultimately lead to poverty reduction. Therefore, in this study, by performing ARDL test, long-term and short-term relationships between stock market development variables (value of exchanges traded, volume of stocks traded on the stock exchange and number of listed companies) and real GDP with Gini coefficient (amount Poverty) in the period 1365-1398 and using annual data in Iran to be examined. Therefore, the results indicate that in the short run and in the long run, the effect of all the variables used on the poverty rate in Iran is negative. Also, the variable of the value of transactions in the stock exchange has had the most negative impact among the variables of financial market development on the poverty rate in Iran.
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