Causal Nexus between Stock Market Development, Human Capital and Growth in China: An Empirical Approach

Abstract

This paper examines the Granger causality nexus between stock market development, human capital and economic growth. Using three measures of stock market development and employing a vector autoregressive model, we study the relationships for China over the time period of 1990-2017. Our innovative time series data estimation technique allows us to find significant causal links between the variables in both the short and long run.