Financial Crisis, Stock Market and Economic Growth: Evidence from ASEAN-5
Document Type
Article
Publication Date
1-1-2019
Abstract
This paper examines the effects of the Asian Financial Crisis (AFC) and Global Financial Crisis (GFC) on economic growth in the ASEAN-5 countries. Indonesia, Malaysia and Thailand were found to be most affected by the AFC but not the GFC. Additionally, for Malaysia and Thailand, real output responded positively and significantly to shocks in the stock market. These findings are consistent with the results that show that the shock in the Kuala Lumpur Stock Exchange has a larger effect on real output than other variables for twenty periods. However, a shock in the Bangkok stock exchange has a higher effect on real output and the effect remained strong until the tenth period. This suggests that the stock market is an important economic growth driver in Malaysia and Thailand. © 2019 ISEAS - Yusof Ishak Institute.
Keywords
ASEAN, Economic growth, Financial crisis, Stock market
Divisions
FacultyofEconomicsAdministration
Publication Title
Southeast Asian Economies
Volume
36
Issue
1
Publisher
ISEAS - Yusof Ishak Institute