Market Development Indicators Research Articles

Examining the impact of the stock market development on Economic growth- KSA Tadawul.

The relationship between stock market development and economic growth has been a subject of debate, with arguments centered on the impact of a well-functioning stock market on economic growth. This study argues that economic growth is influenced by stock market development and economic reform indicators, while controlling for other determinants of growth. The research employs a comprehensive theoretical framework linking stock market development to economic growth, and it specifically focuses on the Tadawul stock market in Saudi Arabia. The empirical analysis, using sophisticated panel data econometric techniques, reveals a significant positive correlation between Tadawul stock market and economic growth, particularly in the oil sector. This suggests that the Tadawul stock market plays a crucial role in influencing and contributing to economic growth, especially within the context of the oil industry.

ІНВЕСТИЦІЙНА ДІЯЛЬНІСТЬ СТРАХОВИХ КОМПАНІЙ НА РИНКУ СТРАХОВИХ ПОСЛУГ УКРАЇНИ: ОЦІНКА ТА НАПРЯМИ РОЗВИТКУ В СУЧАСНИХ УМОВАХ

The article considers the formation and investment of financial resources of insurance companies in Ukraine in the current conditions and outlines the main directions of increasing the investment potential of insurance companies. The dynamics of growth of insurance premiums, reserves, assets and equity of insurance companies as important indicators of market development in general and investment income of insurance companies are studied. The small share of insurance premiums and assets in GDP indicates that the development of the insurance market has little impact on the country's economy. There is a gradual growth of the market in 2023 by key indicators. Insufficient capitalization of the domestic insurance market, a large share of compulsory insurance in insurers' portfolios, low level of life insurance development, and economic crisis are currently having a negative impact on the development of insurance companies' investment activities. The author outlines the main areas of investment activity for the near future, which are to activate the financial market in order to use a wide range of investment instruments, improve the quality of the investment portfolio and optimize its management by transferring part of the insurance reserves to trust management, and encourage insurance companies to invest in the real sector of the economy. It is important to strictly adhere to the principles of building an investment management system based on high investment liquidity, return on investment, strict liquidity restrictions, and sensitivity to changes in interest rates and profitability. All of this will help strengthen the investment potential of the insurance market, turn it into an important investor in the national economy, and increase the profitability of insurance companies' investments, in particular. In addition, the development of voluntary insurance, including long-term life insurance, the development of new competitive insurance products, the search for new and improvement of existing sales methods, the expansion of the regional network, and the widespread use of digital technologies are considered promising.

Адаптационные механизмы российского рынка труда в условиях неопределенности

The relevance of the study is due to the continuous changes in the labor market under the influence of external factors and the need to increase its adaptive abilities in conditions of uncertainty. The purpose of the study is to identify the features of the adaptation of the Russian labor market to the conditions of uncertainty caused by the pandemic, and the development of new forms of employment that ensure the structural transformation of the market and changes in labor relations. The objectives of the study are to analyze new forms of work arising on the basis of transformation of models of interaction between participants in a period of uncertainty; to determine the vector of development of labor relations that ensure the balance of the labor market. Methodology . The study was carried out using methods of theoretical analysis, systematization, economic analysis, graphical method, comparative analysis method, and morphological analysis method. Results . The analysis of the dynamics of the labor market development indicators during the pandemic allowed us to conclude that it was destabilized in the conditions of uncertainty, manifested in the form of a decrease in employment indicators, an increase in unemployment, an increase in tension in the market. By 2021, many indicators of the labor market development have returned to a doc-like level. The activity of the Russian population in the global online labor market is analyzed, as well as the demand of Russian companies for labor on digital platforms. The directions of ensuring greater adaptability of the Russian labor market through the use of various mechanisms of state policy are substantiated. Conclusions . The emergence of new forms of work based on the transformation of models of interaction between participants has been established. It is concluded that accelerated digitalization during the pandemic created opportunities for online employment of the population, which contributed to the partial removal of tension in the Russian labor market.

Stock Market Development and Economic Growth of Nepal

The development of Nepal’s stock market and economic growth are examined in this study since several factors, including stock market development, affect economic growth. The stock market development indicators are market capitalisation, trading turnover, NEPSE index, gross capital formation, and gross national savings. This research is based on secondary data (1995 to 2022) extracted from the Quarterly Economic Bulletin of Nepal Rastra Bank in mid-July 2023. The econometric methods such as the Johnson cointegration test, Granger causality test, and VAR model were used to assess the nexus between the stock market development and economic growth in Nepal. Long-term cointegration has been observed between the stock market development indicators such as gross national savings, market capitalisation, gross capital formation, trading turnover, stock market index, and economic growth. Likewise, economic growth and stock market development are shown to be causally related in a unidirectional manner by the Granger causality test. It concludes that stock market development matters for economic growth in the short and long run. The regulatory authority may adopt an appropriate policy for sustained growth of the stock market through (i) improving disclosure and transparency, (ii) enhancing investor awareness and education, (iii) safeguarding the interest of shareholders, (iv) diversifying the trading opportunities, and (v) maintaining the macroeconomic stability.

Stock market development and capital formation in selected African economies

PurposeThis study aims to explore the possibility that securities markets in selected African countries of Egypt, Kenya, Nigeria and South Africa play a significant role in capital accumulation using panel data analysis. This is done by exploring the relationship between gross fixed capital formation on the one hand and financial market development indicators on the other hand. Thus, the study aims to examine if stock market size and liquidity are determinants of capital accumulation.Design/methodology/approachThe analysis is based on annual times series from 1991 through 2017 spanning four African stock markets. The analysis utilizes the fixed-effect and random-effect econometric models. The Durbin–Wu–Hausman test is used to choose between the two models.FindingsThe key results indicate that stock market capitalization is a positive determinant of gross fixed capital formation. The market value traded and turnover have no relationship with capital formation. Therefore, the role of stock African stock markets in promoting capital accumulation and, subsequently, industrial growth in Africa is seriously questioned.Originality/valueOnly a handful of studies have examined the role of the African securities market in promoting capital accumulation. This study is unique in which it focuses on the leading stock markets in the four corners of Africa. The markets are from Egypt in the north, South Africa from the south, Nigeria from the west and Kenya from the east. These four markets account for a significant segment of all African markets.

Historical Development of Frontier Stock Markets in Sub-Saharan Africa

Purpose: The purpose of this research is to review and compare the development of the three major frontier stock markets in Sub-Saharan Africa over time. The study provides some narrative around the historical development of each market as well as a theoretical backdrop for stock market development studies. Theoretical framework: The adaptive market hypothesis was used as the theoretical backdrop for the study. The adaptive market suggests that stock markets develop in an evolutionary manner (similar to natural selection). This evolution of stock market development is influenced by changes in investors’ behavior and regulatory standards. Design/methodology/approach: Data was collected from 1993 to 2020 on the IMF market efficiency score, the value of stocks traded, aggregate market capitalization, and the number of listed companies for the sample markets. The study used descriptive statistics and trend analysis to discuss and compare the stock market development indicators across the different selected frontier markets. Findings: The study discovered an improvement in stock market performance across the sample period. The Johannesburg Stock Exchange was found to be the most developed of the three stock exchanges. The Nigerian Stock Exchange was second while the Nairobi Stock Exchange was third. Some factors that erode the performance of these stock markets were also discussed. The practical and social implications: The sample stock markets are the major frontier markets, and so are often the first stop for foreign investors that want to penetrate the Sub-Saharan African markets. The performance of these markets often determines the level of foreign direct investment (FDI) and foreign portfolio investment (FPI) that flow into Africa. Originality/ Value: Few studies have investigated the performance of stock markets in Sub-Saharan Africa. Also, the few studies that investigate the performance of these markets rarely proceed to discuss the market-wide factors that erode the performance of these markets compared to those of developed economies. Some factors like the size of the economy, low financial literacy, misplaced government policies, poor investment culture, buy-and-hold-tight attitude, and high transaction costs were identified and discussed.

Analysis of M&A in Electrical Manufacturing Enterprises: Evidence from Midea's Acquisition of KUKA

Contemporarily, M&A is common in electric manufacturing industry. This paper investigates the specific process of Midea's merger and acquisition of Kuka, and interprets the merger effect from the perspective of environmental analysis, financial index analysis and market analysis based on the annual financial and market development indicators of Midea Group. The case study presented in this paper demonstrates that Midea actively responded to the "Made in China 2025" proposal by seeking technological expansion and advancement. Through acquiring KUKA's industrial robot technology and manufacturing skills, Midea built a smart home industry chain and expanded its business scope appropriately, further realizing its strategic layout for global business. Performance analysis shows that Midea's innovation and technological capabilities significantly improved after the acquisition, leading to enhanced market competitiveness and influence. However, due to the substantial cost of the acquisition, Midea's profitability declined in the short term. The reasons and effects of Midea's merger and acquisition of Kuka are demonstrated, and effective suggestions and implications are put forward accordingly.

Employee turnover and the social outreach (breadth): international evidence from the microfinance industry

PurposeEarlier studies on employee turnover have invested enormous scholarly mileage to understand and address human resource challenges. Considering the substantial evidence on the negative and non-linear relationship between employee turnover and firms’ performance, the purpose of this study is to investigate the effects of employee turnover on the social outreach (e.g. breadth of outreach) of microfinance institutions (MFIs), also known as the financial inclusion agenda of the Sustainable Development Goals.Design/methodology/approachTo achieve the study objective, the authors collected unbalanced panel data of 1,391 MFIs, covering a total of 96 economies and a period of 2010–2018. The organizational and macroeconomic data were obtained from the World Bank’s Mix Market and World Development Indicators databases, respectively, and subsequently analysed using the pooled ordinary least squares, random effects model, fixed effects model and generalized method of moments.FindingsOverall, the authors found that employee turnover has a positive impact on the social outreach of MFIs, which suggests that employee turnover reduces organizational blindness and groupthink, potentiates efficiency gains and minimizes retention costs. On the contrary, this study does not find evidence of a non-linear effect of employee turnover on the outreach objectives of MFIs. Meanwhile, these effects were observed to vary depending on the proxy, sub-samples and techniques used in the analysis.Originality/valueMotivated by the paucity of literature, the study has uniquely investigated the effect of employee turnover on the social outreach objective of MFIs by using relatively recent and global-level data. The study findings can help managers and the human resource departments to make optimum decisions about employee turnover management.

The financial Kuznets curve of energy consumption: Global evidence

In this study, we explore the simultaneous existence of a Financial Kuznets Curve -an inverted U-shape relation between financial development and energy consumption- and Income Kuznets Curve -an inverted U-shape relation between income and energy consumption-for a panel of 85 countries. In terms of the financial Kuznets relation, we compare the effects of three stock market development indicators (i.e., stock market capitalization ratio, stock market value traded, and stock market turnover ratio) with the counterpart effects of three credit market indicators (i.e., domestic credit provided by the banking sector, liquid liabilities, and broad money supply. Drawing on the existing literature, we control for changes in country openness, natural resource endowments, and inflation by applying four methods in parallel: the parametric analysis (dynamic system GMM), and the non-parametric (panel quantile regression) as a robustness check. The results for both Kuznets curves are robust to all four methods. They indicate a simultaneous existence of an income Kuznets curve and a Financial Kuznets Curve when the indicators of the stock market development are considered. However, no Financial Kuznets Curve exists with respect to the credit markets’ development. When the credit markets are considered, only the income Kuznets curve is detected. The existence of a relationship between the stock market development and energy consumption has implications for national energy policies. Stock markets should be used actively for the promotion and funding of “green finance” industrial projects, encouraging innovation and new technologies for cleaner production. Our findings are also useful for crafting different financial development policies for countries that are seeking to encourage or discourage energy consumption.

How Do Stock Market Development and Competitiveness Affect Equity Risk Premium? Implications from World Economies

Purpose: This paper examines the interrelatedness between countries’ stock market development and competitiveness and the equity risk premium (hereinafter, ERP). In addition, this paper examines the length of time that stock market development takes to have an impact of ERP. The results offer an empirical guide to stock market authorities about the robust factors that help reduce ERP, which, in turn, encourages raising equity financing. Design/methodology: The dataset includes 59 countries that are listed in the market potential index (hereinafter, MPI) covering the years 1996 to 2020. The MPI provides comprehensive macroeconomic factors that can be used for examining stock market competitiveness and, thus, its potential effects on ERP. Findings: The results of the robustness test show that (a) a negative and significant association exists between the turnover ratio of domestic shares to stocks traded and ERP, (b) the increases in stock market competitiveness are associated with increases in the number of listed companies, (c) lowly ranked countries in the MPI are associated with increasing ERP, and (d) in terms of the interaction between duration of stock market development and competitiveness, the relatively competitive stock markets take 2–6 years for stock market development indicators to have a significant effect on ERP. Originality: This paper offers two main contributions to the related literature. The first contribution is to offer a measure of stock market competitiveness using indicators of stock market development. Therefore, robust indicators of stock market development can be reached. The second contribution is to offer empirical results about the length of time (referred to in this paper as duration) required for the indicators of stock market development to have a favorable effect on ERP.

Трансформация рынка труда в условиях неопределенности: новые формы, факторы и перспективы

The relevance of the study lies in the need to analyze the transformations of the Russian labor market in conditions of uncertainty for the subsequent justification of measures to ensure its adaptability to changing conditions. The purpose of the study is to analyze the impact of uncertainty factors on the labor market, identify positive trends and threats, as well as to substantiate the mechanisms of adaptation of the labor market to changing conditions. The objectives of the study are to study the factors determining the growth of uncertainty at the present stage of socio-economic development and to identify the nature of the labor market's response to them; to substantiate the vector of development of labor relations in order to ensure the adaptation of the labor market to changing conditions. Methodology. The study was carried out using methods of theoretical analysis, systematization, economic analysis, comparing indicators in different time periods, morphological analysis, and graphical method. Results. The article analyzes the indicators of labor market development in dynamics, identifies negative trends in 2020. It is proved that in 2020 the labor market reacted to the challenges of uncertainty by changing the employment structure. The authors propose ways to maintain the adaptability of the Russian labor market to changes by implementing a set of state policy measures. Conclusions. The authors identified the traditional forms of labor market response to crisis manifestations in the economy (price and time adjustments), established the emergence of new forms of labor based on the transformation of models of interaction between participants.

Влияние кризиса и санкций на развитие рынка розничного кредитования

The article is devoted to the analysis of trends in the development of the retail lending market in Russia in the context of a sharp deterioration in international economic and political relations and aggravation of problems in various sectors of the financial market. The subject of the study is the economic relations arising in the process of functioning of the retail lending market. The object of research in the article is not randomly selected banking sector of the retail lending market. For decades, economists in Russia and the world have emphasized the significant socio-economic role of the retail lending market. However, at the same time, it has been repeatedly noted at various levels that an increase in the volume of lending to the population can have both positive and negative consequences. The positive aspects are the expansion of effective demand and the improvement of the quality of life of citizens. Negative results are seen in a possible decline in the standard of living of the population, due to the growth of expenses related to debt servicing. This contradiction is particularly acute in the conditions of the economic crisis. This determines the relevance of the study. The purpose of the article is to assess the factors influencing the dynamics and structure of the banking sector of the retail lending market. Based on this, the objectives of the study are not only to systematize and analyze trends in the development of the retail lending market, but also to assess the actions of the Bank of Russia in the current situation in the credit market. The correctness of the decisions taken by the banking community and the Bank of Russia, which allowed to prepare for the crisis to a certain extent and minimize the consequences of increased credit and interest rate risks, is emphasized. Assumptions are made on the nature of the functioning of the retail lending market in the short term.The study is based on a comparison of indicators of retail lending market development during periods of certain stability and sanctions. The article focuses on the effectiveness of the Bank of Russia’s application of monetary regulation methods characteristic of Keynesian theory.

Экономическая оценка рынка цифрового здравоохранения РФ

The article presents the results of the economic assessment of the digital health care market in the Russian Federation through interpretation of commercial relations in the field of telemedicine. The introduction of digital technologies is a fundamental development direction of all spheres of modern socio-economic system without any exception. The use of digital platform solutions actively affects health care system. The pandemic, which formed the objective imperatives of remote communications, became the trigger for intensification of digital transformations in health care. Telemedicine has become a significant manifestation of digital transformation of health care. The dominant part of its services is sold for money. In this regard, it is relevant to study the key dynamic and structural indicators of telemedicine market development, which will allow giving the answer about its economic capacity, investment attractiveness and potential commercial efficiency. The results of economic assessment of telemedicine market are important from the point of view of developing national mechanisms for its regulation and correction of competitive environment, since besides its commercial component there are also social effects that should be taken into account to manage the state of public opinion. The purpose of the study is to conduct economic assessment of the state and development of digital health care market in the Russian Federation. The research methodology was based on the use of the following methods: statistical, comparative, analytical, dialectical, graphical, and logical. The dynamics of cost capacity of telemedicine market, the volume of telemedicine services market per capita, the revenue of the leading companies in domestic telemedicine market, the level of investment activity, as well as the degree of popularity and economic accessibility of digital health care services were analyzed, as a part of economic assessment of digital health care market in Russia. The author's team reveals the essence, prerequisites and prospects of digital transformation of health care system, presents the results of analytical diagnostics of key dynamic and structural indicators of domestic telemedicine market functioning, and substantiates the potential of commercial development and investment attractiveness of the Russian digital health care market.

Voluntary Private Pension Funds and Capital Market Development

We examine voluntary private pension funds and their relationship to capital market development. Using data from Turkey, we analyse depth, efficiency and liquidity indicators of capital markets after the introduction of voluntary private pension funds in 2003. Overall, our findings indicate that the introduction of voluntary private pension plans are positively associated with indicators of capital market development, focusing on market depth (such as market capitalisation and trading volume) in both debt and equity markets. We also observe that indicators for other more recently established markets are also positively associated with the introduction of voluntary pension plans. In contrast, equity market turnover shows a negative association. These findings, along with the positive association with the corporate governance index, suggest that pension funds are important for capital market development and for corporate governance of firms as they are long-term investors. However, the introduction of state contributions in 2013 is not robust to alternative specifications.

Development of Regional Labor Markets in Ukraine as a Tool to Regulate Internal Migration and Reduce Social Vulnerability

Purpose: The article explores links between the attractiveness of regional labor markets and internal migration as a change in the usual place of residence in Ukraine. Methodology: Based on the migration theory of “push-pull” a study of the attractiveness of regional labor markets as determinants of the intensification of internal migration in 24 regions of Ukraine (2010–2020) was conducted with the use of integrated assessment and balance econometric modeling. Findings: The study found that the internal migration activity in Ukraine is of urbanistic nature because the development of rural-urban area migration vectors dominates in the country. The most attractive regions in the focus of internal emigration and immigration processes are defined based on the developed rankings of the regions’ attractiveness by the system of labor market and employment development indicators. Research limitations: This article studies a specific country and its regions, along with the local labor market. One should be careful when generalizing the results to other regional labor markets. Originality/value: The level of regional labor markets’ attractiveness correlated with internal migration activity. The attractive regional labor market, high IT market development level, and increasing innovative-technological capacity proved the main attraction factors of these regions.

Changes in the Organic Products Market as a Result of the 2022 Events in Eastern Europe

Organic products markets will be affected by the food crisis, changes in the structure of consumer demand, rising food prices, and the migration of Ukrainians due to Russian aggression. This article aims to identify possible changes in the organic products markets due to the events of 2022 in Eastern Europe. Methodology. The main research methods included analysis and synthesis, comparison, and statistical analysis of organic markets of EE countries (Bulgaria, Czech Republic, Hungary, Poland, Romania, and Ukraine). The analysis was carried out according to the following criteria: key market indicators (land area, producers, exporters, importers, retail sales), development history; institutions; market development indicators, including export and import; standards and legal framework; state support policy. The databases used for the analysis are Eurostat (2022), Research Institute of Organic Agriculture by FiBL (2022), and 2008-2020 data. The results indicate possible changes in the organic products market due to the events of 2022 in Eastern Europe: 1) possible market growth for organic products in the countries with the highest refugee arrivals (Poland, Romania, Bulgaria, Moldova) and for Ukraine to overcome the food crisis; 2) a significant increase in prices of organic products due to increased demand for food and food crisis, higher energy costs; 3) market growth in Poland and the Czech Republic as the most developed among the EE countries due to increased demand for products in the importing countries (Germany, Italy, France and Spain); 4) possible reduction of organic food production due to reduced demand due to increased consumption of essential goods; 5) through the active provision of financial assistance to Ukraine to meet nutritional and humanitarian needs, EE countries reduce the financial capacity to support organic producers and their subsidies level.

Determinants of Capital Market Development in Kenya

This study sought to determine the determinants of capital market development in Kenya. The empirical study was conducted using time series data for the period 2001- 2020. This study adopted quantitative approach and employed secondary data of twenty years; Pearson correlation test was used to evaluate the relationship between the variables. Furthermore, this study used multiple regression analysis by applying Ordinary Least Square (OLS) method. The macroeconomic variable data involved were stock market liquidity, investment, and foreign direct investment. For capital market development indicators, market capitalization, listed companies, value traded and turnover ratio were considered. The regression results demonstrate that all the variables, stock market liquidity, investment and foreign direct investment are important determinants of capital market development in Kenya. The findings from Ordinary Least Square (OLS) indicated that the model is significant in a whole and the three independents explain 91% changes in the dependent variable. The study recommends the following policies among others; the government should regulate and control financial sector in order to promote the capital market development. Policy maker should cut off restriction for the foreigner investors and to create strategies to increase the foreign direct investment and offer incentives.

SOCIAL PORTRAIT OF EMPLOYED POPULATION OF KAZAKHSTAN: TRENDS AND DYNAMICS OF CHANGE

Employment of the population is one of the key indicators of labor market development. Particular importance for improving state policy approaches to promoting employment of the population, as well as increasing the economic activity of the population, is the research of the structure and characteristics of the employed population of the country at the current stage. The article presents an analysis of the main trends and characteristics of the employed population of Kazakhstan. Based on official statistics, the author revealed the age and gender composition of the employed population, distribution by type of economic activity, by place of residence, by employment status, as well as by position and profession. In addition, based on a comprehensive analysis of documents and information and analytical materials in the field of employment, the author put forward theses about the causes of the identified trends and features. In general, the article systematizes data on the main characteristics of the employed population in Kazakhstan and develops a number of practical recommendations.

Impact of Market Development Indicators on Company Performance

The purpose of this article is to measure the impact of market development indicators on company performance, according to the perception of decision-making agents in two nonalcoholic beverages companies. The article was developed according to the application of two research instruments aimed at experts and decision-making agents in the market development area. The first research instrument was used to validate a theoretical model of market development stages and indicators. The second instrument was used to identify the impact of the indicators. MONNA software performed the calculation of the impact of the indicators on the performance of two nonalcoholic beverages companies. The results showed the impact of the indicators according to stages that represent a chronological order of the market development process. The results identify the relationship between indicators present in different stages of market development. Among the main contributions, the article demonstrates the purpose of the indicators, identifying their impact on company performance. The article contributes to a theme of relevance to the scientific literature and its results generate knowledge for researchers to develop future studies. The contributions of the article stimulate how company managers can direct their activities toward optimizing the most impactful market development indicators.

Cointegration between Stock Market and Economic Growth: Evidence From Nepal

This paper examines the linkage between stock market development and economic growth in the context of Nepal using 33 annual observations from Mid-July 1988 to 2020 on economic and financial time series of real GDP, market capitalization and annual turnover. The study employs Engle-Granger(1987) and Johansen’s (1988) cointegration test to examine the cointegration between economic growth proxied by log of real GDP and stock market development indicators, namely stock market size and liquidity, proxied by log of market capitalization and log of annual turnover, respectively. The results of cointegration show that both stock market size and liquidity can predict economic growth in Nepal. The results of cointegration test from both Engle-Granger procedures and Johansen’s method suggests that economic growth is cointegrated with both stock market size and stock market liquidity, and hence they are interrelated with each other in the long run. The basic implication of study finding is that both stock market size and liquidity significantly predict the economic growth in Nepal over the sample period and hence there is a need for promoting secondary market trading both in terms of size and liquidity.