This article examines the relationship between stock market variables and economic growth across different countries. The findings reveal a positive correlation between these variables, albeit with varying degrees of impact on economic growth depending on the country. Notably, the study finds that the stock market's relevance to economic growth is generally weak, with a slightly higher correlation observed in high-income economies compared to low-income ones. The article further analyzes the mechanisms through which the stock market influences economic growth, including its impact on capital productivity, provision of financial support for technological innovation, and facilitation of mergers and acquisitions. The stock market also affects companies' investment behavior through market price changes and influences society's saving and consumption patterns. While the empirical analysis confirms a significant positive correlation between the stock market and economic growth, the interaction is not always beneficial. A booming stock market can stimulate consumption and promote economic development, but a sluggish market can hinder growth. Understanding and leveraging the interaction between the stock market and the macro economy can enhance macroeconomic regulation and control, fostering mutual reinforcement between finance and the economy.

Li Yao. The impact of stock market development on economic growth. Academic Journal of Business & Management (2024) Vol. 6, Issue 9: 33-43. https://doi.org/10.25236/AJBM.2024.060906.

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