Dynamic impacts of SME stock market development and innovation on macroeconomic indicators: A Post-Keynesian approach

Trang Nguyen, Taha Chaiechi, Lynne Eagle, David Low

Research output: Contribution to journalArticle

Abstract

This study is grounded on the propositions of Kaleckian–Post-Keynesian​ macroeconomic framework to explore the dynamic impacts of SME (Small and Medium Enterprise) stock market development and innovation on key macroeconomic variables in Hong Kong, Singapore, Thailand, and Malaysia. For the reported empirical analysis, a Structural Vector Error Correction (SVEC) model and an impulse response function (IRF) were adopted. The evidence shows that SME stock market development and/or innovation have small but positive impacts on short-run economic stimulation. The SME stock market development promotes economic growth through the combination of the following channels: private investment, savings and productivity in Hong Kong, Singapore, and Thailand. Innovation, on the other hand, fosters growth through the combination of these channels and the employment channel in all four countries.

Original languageEnglish
Pages (from-to)327-347
Number of pages21
JournalEconomic Analysis and Policy
Volume68
DOIs
Publication statusPublished - Dec 2020

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