PL EN


2006 | 54 | 6 | 584-596
Article title

LONG-RUN RELATIONSHIP BETWEEN ECONOMIC GROWTH AND STOCK RETURNS: AN EMPIRICAL INVESTIGATION ON CANADA AND THE UNITED STATES

Title variants
Languages of publication
EN
Abstracts
EN
This article examines the long run relationship between economic growth and stock prices for Canada and the United States through cointegration estimation procedure, and it implements the Vector Error Correction Models (VECM) to abstract simultaneously the short- and long-run information in the modelling process. The results from the cointegration tests reveal that economic growth and stock prices share long run equilibrium relationship for both Canada and the U.S. The results from the VECM indicate that for the U.S., causality runs from economic growth to stock prices but not vice versa. However for Canada, the results reveal that there is a bi-directional causality between economic growth and stock prices.
Contributors
  • B. Sawhney, Ekonomický ústav SAV, Sancová 56, 811 05 Bratislava 1, Slovak Republic
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
06SKAAAA01603508
YADDA identifier
bwmeta1.element.748a956e-e74e-3805-a838-a94320cc358a
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