Development of Financial Market and Economic Growth: Review of Hong Kong, China, Japan, The United States and The United Kingdom

Abstract

The empirical evidence suggests that the development of stock markets in China, USA, United Kingdom, Japan, and Hong Kong have independently a strongly positive correlation with their economic growth. The result brings out an important theory to support for the proposition that the stock market development is one of the key drivers of economic growth in developed and developing countries, whatever the modes of their financial systems, stage of their economic development and types of economic system.