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This study aim to explore the role of the macroeconomic variables and stock prices for emerging economies perspective. Further, the study examines the association between the macroeconomic variable and stock prices across the panel of India and Brazil. The study utilizes monthly data from 2000M1-2016M08. We employ various panel econometric techniques. The findings confirm that the long run relationship between variables and unidirectional causality. The results also reveal that GDP, inflation, exchange rate, interest rate and stock prices play an important role in economic development.

This paper studies the relationship between the financial development, trade openness and economic growth in India. The Phillips-Perron (PP) test is used to check the order of integration of the variables. We apply both Johansen co-integration and Granger causality methodologies for a long run relationship and the direction of the Causality between the variables. Our findings confirm that there exist the long run relationship among financial development, trade openness, and growth. Results also support the idea that country may experience faster per-capita growth with a growing degree of trade openness through gains in country productivity associated with capital accumulation. Finally, the direction of the causality results followed mixed.

There is a developing concern among developed, developing, and emerging economies in relevance to increasing real sector expenditure across the world. As a result, all countries have started to increase their real sector expenditure by increasing the share of finance. Hence, this study aims to examine the effects of both financial development and real sector on economic growth; we choose five emerging market economies to explain the economic growth process between 2000 and 2016. The results of long‐run elasticities document that real sector and financial development play a significant role in promoting economic growth. The results also suggest that money supply, exchange rate and inflation have a considerable positive effect on economic growth, respectively. Given these findings, we suggest that both governments and policy makers of the BRICS nations to initiate more effective policies to increase the real sector expenditure and develop financial sector. The increasing real sector will allow the economies to grow further by ensuring sustainable economic development across the BRICS member countries. [ABSTRACT FROM AUTHOR]

This study focusses on the negative relationship between inflation and stock returns (the puzzle of fisher hypothesis). Fama hypothesis examined the relationship between macroeconomic variable and stock return and found the strong relationship between the real output and stock prices. This study revisits Fama's hypothesis from the period 1990M1 to 2016M6 for emerging country perspective. The results documented that there is a significant negative relationship between inflation and output whereas positive between stock price and output. [ABSTRACT FROM AUTHOR]