Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange

Abstract

The stock market plays an important role in economic development of Bangladesh. It transfers the fund from surplus units to deficit units for investment. The main purpose of the study is to examine the significance of stock market in economic development of Bangladesh. The study has used only secondary data.  The secondary data are collected only relevant to study such as market capitalization, stock turnover, number of listed securities and companies, stock index,  GDP for  measuring economic development  during the period of 2003- 2013. The main reason to consider the certain period is the availability of data. The study has used some statistical measures of means, growth rate, and Ratio of total market capital to GDP method. This study revealed that stock markets have made substantial contribution in economic development of Bangladesh. The study seems to carry an enormous academic value since a few studies have been undertaken in this area. It may be helpful to the owners of CSE, Management, SEC, Academic researchers and national policy makers who have been making endeavor to the development of stock market development as well as Bangladesh Economy as a whole.

Keyword: Stock market, Market Capitalization, Economic Development, Bangladesh.