Analysis of the Main Indicators of the Bucharest Stock Exchange
The goal of this article is to achieve an analysis of the evolution and significance of the main indicators of the Bucharest Stock Exchange (stock exchange capitalization, BET index, value of the concluded transactions) over the last fifteen years. One of the significant elements in analyzing the performances of the capital market consist of the stock exchange capitalization which an essential indicator for characterizing of this domain of activity, mainly if considering the fact that it is used as weighing factor in the calculation of the stock exchange indices. Therefore, I have studied the connection between this one and the other analyzed indicators, applying in this respect the econometric model of regression.
Correlation between BET Index Evolution and the Evolution of Transactionsâ Number â Analysis Model
The Bucharest Exchange Trading (BET) index and the total number of the transactions displayed between January and September 2015 by the The Bucharest Stock Market represents the topic of the present approach in regard to the intensity of the relation between them, using the simple regression function as mathematical mean. More studies were completed with the aim of establishing the relevance of these two variables, be it dependant or independent. The correlation between the evolution of the BET index and the number stock transactions was important for the present study, as well as the correlation between the total number of transactions and the stock transaction number that revealed itself as very powerful. Simple linear regression model is a relatively easy and very effective way to establish the correlation between two economic indicators. Thus, the use of this analysis method in economic research allows determining how a given economic variable, defined as independent determines the evolution of the second results indicator.
Quantitative Methods Inquires 64 CORRELATIONS BETWEEN CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH : THE CASE OF ROMANIA
In the literature on endogenous growth, the link between capital markets development and economic growth has received much attention. Although there are many studies regarding this aspect, approaches on emergent ex-communist countries’ economies, especially for Romania, are very few comparatively to the general cases. Our paper examines the correlation between capital market development and economic growth in Romania using a regression function and VAR models. The results show that the capital market development is positively correlated with economic growth, with feed-back effect, but the strongest link is from economic growth to capital market, suggesting that financial development follows economic growth, economic growth determining financial institutions to change and develop.