ANALYSIS OF THE DEVELOPMENT OF STOCK MARKETS WITH THE CALDERON-ROSSELL MODEL: EXAMPLE OF BRICS-T COUNTRIES

Abstract

Stock markets are vital fort he economic development of a country. The advancement of stock markets also plays a role in the development of financial sector. By the way, well-functioning of financial institutions is the driving force behind the sustainability of the development of the stock markets, along with the contribution to economic development. The aim of this study is to pinpoint the factors behind the development of stock markets for the BRICS-T group of developing countries with the help of the Calderon-Rossell model for the period 2000-2018. According to the results of the panel regression analysis; private sector loans and inflation are not posing any statistically significant effect on the development of the stock market. In contrast, with growth being the most effective variable, savings, foreign direct investments and turnover rate are significant variables in positive direction on the development of stock markets.