Abstract:
This research article is an attempt to explore the impact of stock market performance on economy of a country. Comparative analysis of various research studies has been undertaken to determine the variables or factors acting as baseline parameters. The adopted methodology was quantitative research conducted on six different countries (US,japan,china,Germany,Malaysia,Pakistan) for the period of time (2004 to 2020) 16 years. Analysis of results reveals that market capitalization is significant indicating a positive relation between stock market performance and economic growth. This research study confirms that well-functioning stock markets promote economic growth through faster capital accumulation as well as better resource allocation
