Dynamic impacts of SME stock market development and innovation on macroeconomic indicators: a post-Keynesian approach

Journal Publication ResearchOnline@JCU
Nguyen, Trang;Chaiechi, Taha;Eagle, Lynne;Low, David
Abstract

This study is grounded on the propositions of Kaleckian-Post-Keynesian macroeconomic framework to explore the dynamic impacts of SME (Small and Medium Enterprise) stock market development and innovation on key macroeconomic variables in Hong Kong, Singapore, Thailand, and Malaysia. For the reported empirical analysis, a Structural Vector Error Correction (SVEC) model and an impulse response function (IRF) were adopted. The evidence shows that SME stock market development and/or innovation have small but positive impacts on short-run economic stimulation. The SME stock market development promotes economic growth through the combination of the following channels: private investment, savings and productivity in Hong Kong, Singapore, and Thailand. Innovation, on the other hand, fosters growth through the combination of these channels and the employment channel in all four countries.

Journal

Economic Analysis and Policy

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Volume

68

ISBN/ISSN

0313-5926

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Pages Count

21

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Publisher

Economic Society of Australia

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EISSN

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DOI

10.1016/j.eap.2020.10.002