STOCK MARKET DEVELOPMENT AND CROSS-COUNTRY DIFFERENCES IN RELATIVE PRICES

• 成果类型: Article
• 署名作者: Larrain, Borja
• 署名单位: Pontificia Universidad Catolica de Chile
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00030
• 发表日期: 2010-11
• 页码: 784-797
• 关键词: foreign-assets; financial development; political-economy; external wealth; determinants; liabilities; industrial; NATIONS; TRADE

摘要

We document a positive correlation between stock market capitalization and price levels (wages) within the group of countries with poorly developed stock markets and a negative correlation between these two variables within the group of countries with more developed stock markets. This paper argues that there is a causal relationship behind these correlations. Stock markets initially stimulate growth, pushing the demand for nontradables and increasing prices and wages. Stock markets also promote a shift toward more capital-intensive technologies in the tradable sector, increasing the migration of workers to services and eventually putting downward pressure on wages and prices.