Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.14279/33494
Title: Linkages between financial and macroeconomic indicators in emerging markets and developing economies
Authors: Rita Biswas 
Zhongwen Liang 
Prakash Loungani 
Michaelides, Michael 
Major Field of Science: Social Sciences
Field Category: Economics and Business
Keywords: Finance-growth nexus;Macrofinance;MIDAS;EMDEs;Financial indicators;Predicting macroeconomic indicators
Issue Date: Sep-2024
Source: Global Finance Journal, 2024, vol64
Volume: 62
Issue: 101007
Journal: Global Finance Journal 
Abstract: This paper provides empirical evidence on the finance-growth nexus, making key contributions by focusing on previously understudied Emerging Markets and Developing Economies (EMDEs) and employing mixed-frequency data. Utilizing panel forecasting models for 50 countries from 1990 to 2019, we examine the empirical link between macroeconomic indicators (e.g., aggregate production) and financial indicators (e.g., stock market indexes). Our results support the notion that financial indicators can indeed serve as robust predictors of macroeconomic indicators. Further, the use of mixed data sampling (MIDAS) models enhances the results, confirming the presence of valuable predictive information in higher-frequency data, even for lower-income countries. These findings bear particular significance for policymakers and investors, given the persistent challenge of accessing timely and reliable data on real indicators in EMDEs.
URI: https://hdl.handle.net/20.500.14279/33494
ISSN: 10440283
DOI: 10.1016/j.gfj.2024.101007
Type: Article
Affiliation : Cyprus University of Technology 
Johns Hopkins University 
State University of New York at Albany 
Publication Type: Peer Reviewed
Appears in Collections:Άρθρα/Articles

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