Can Stock Market Development Boost Economic Growth? Empirical Evidence from Emerging Markets in Central and Eastern Europe.

Abstract: The current economic and financial crisis has had a strong influence on stock market performances in the process of financing the economic activities. This paper aims to analyze the dynamic of the stock market in Central and Eastern Europe under the impact of the macroeconomic imbalances, emphasizing the volatility of the foreign capital inflows. The data selected for the study will be used to test the impact of stock market development on the correlation between foreign capital inflows and economic growth. The result will allow comparisons between the macroeconomic performances and identifying the adequate measures through which national capital market can become more attractive for investors. [Copyright &y& Elsevier]