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 journalArticlepeer-review

    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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