Abstract
The paper investigates the correlation between stock market, real estate market, and economic growth in Vietnam, which is an emerging country. Quarterly data in Vietnam from the third quarter of 2004 to the third quarter of 2018 were utilized. By using the Autoregressive Distributed Lag (ARDL) approach, the results reveal that economic growth is positively associated with stock market and real estate market. An unprecedented finding of this study is that economic growth (GDP) is more correlated to stock market efficiency (SME) than net trading value by foreign investors (FI). Moreover, global financial crisis (GFC) exerts a negative impact on economic growth and real estate market in Vietnam. Further, net trading value by foreign investors (FI) also negatively influences real estate market (REM) in the short term. The study has greatly succeeded in giving first empirical evidence on the relationship between stock market, real estate market, and economic growth in Vietnam. More than that, the results show the key role of global financial crisis in this correlation. The findings are valuable to economies around the world, especially bringing a practical and meaningful value to developing countries like Vietnam.
Highlights
The impact of stock market on economic growth was first studied by Goldsmith (1969)
It can be concluded that stock market efficiency (SME) and net trading value by foreign investors (FI) are essential to stimulate the economic growth in Vietnam
The findings reveal that economic growth is positively associated with stock market and real estate market
Summary
The impact of stock market on economic growth was first studied by Goldsmith (1969). There exists a close association between stock market and real estate market. This correlation has been concluded in many empirical studies (for example, Liu & Su, 2010; Su, 2011; Su, Chang, & Zhu, 2011; Hui, Zuo, & Hu, 2011; Heaney & Sriananthakumar, 2012; Hui & Chan, 2014; Li, Chang, Miller, Balcilar, & Gupta, 2015; Tsai, 2015; Yuksel, 2016; Ali & Zaman, 2017; Bahmani-Oskooee & Ghodsi, 2018), there have been different views on the level of influence
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