Influence of the securities market on economic growth

Abstract

The state securities market represents a reliable source of financing for the economy, which the state can call on, but also can develop, in order to obtain the necessary financial resources for economic development and growth by creating jobs, supporting investment activity, as well as carrying out all actions and measures planned in all spheres of the national economy. At the same time, a developed domestic government securities market can contribute to reducing the state’s dependence on external financial resources, as well as mitigating some of the effects of financial crises. In this context, the purpose of the given article is to analyze the role and influence of the domestic state securities market on the economic growth from a theoretical and practical perspective, being researched based on econometric models, the interdependence between the level and volume of the domestic government securities market of the Republic of Moldova, Brazil, Canada, Romania and Hungary and their economic growth. The results obtained, following the research, show the existence of an interdependence between the analyzed phenomena, the increase in the volume of the domestic securities market generating a certain growth in the economy of that country.