The Stock Market and its Influence on Long-term Economic Growth

The results of an OECD study, according to which stock markets influence the long-term growth of the real economy through the relationship between investment activities and stock market size, were reviewed and/or supplemented on the basis of a data set newly generated by WIFO for 23 OECD countries and for the review period of 1970 to 2000. The results of calculations performed by Leahy et al. (2001) were tested for their robustness through the inclusion of three more countries and three more points in time in the data set as well as through additions to the list of available financial market variables.