Relationship between Stock Market and Macroeconomic Variables: A Study of Asian Emerging Economies and Developed Countries Economies

Abstract

This paper examined the empirical relationships between stock market of Asian developing countries and the developed countries and the macroeconomic variable. The sample size included stock markets, of Malaysia, Indonesia, Bangladesh and Pakistan and US, UK, Japan and Germany. This study is intended to be a useful contribution to the academician researcher and students in their study to understand the relationship. For that we have applied unit root test and OLS test.

Keywords - stock market, GDP, inflation rate, exchange rate