Abstract
Due to increase savings and raise capital for effective investments, securities markets perform an important function to increase the economic growth. In this study, the impact of development of the securities market on economic growth was examined using of 10 developed and 11 developing countries data. In this study, covering the period 1997-2012, the development of securities markets is examined by variables of market capitalization and turnover rate and economic growth is examined by gross domestic product. Based on the results of the panel cointegration analysis, it is concluded that there is a long-term relationship between securities market development and economic growth and double-sided causality have been identified in different groups of countries from economic growth to market capitalization and turnover rate. According to the panel regression analysis results, it is possible to say market capitalization and turnover rate affect gross domestic product positively.
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