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Derivative Markets And Economic Growth: Is There A Relationship?, A. Baluch, Mohamed Ariff
Derivative Markets And Economic Growth: Is There A Relationship?, A. Baluch, Mohamed Ariff
Mohamed Ariff
The spread of capital markets during the half century to-date is a notable global phenomenon in economic development. Derivative markets spread globally in the last quarter century spreading form just two to some 50 in 2007. But the role of derivative markets to economic development has yet been studied. This paper reports new findings on the relationship between derivative market development and (a) economic growth and (b) spot market factors. The results provide very scant support to a positive functional contribution hypothesis by some scholars about derivative markets. However, a negative relationship between the liquidity level of derivative markets and …