Abstract
The primary objective of this paper is to show the link between Philippine Stock Markets and the Philippine economy with due consideration to other economic and noneconomic variables. This paper also explains the effect of investor speculation on the peiformance of stocks. The stock market of a country is a venue for the transfer of long-term capital from a savings bank to company ownership and as such, reflects the amount of local and foreign capital that enter the market. Many economists have considered the stock market to be a precursor to the economic growth of the country. This they gleaned from the seemingly positive correlation between stock index and economic performance. It was especially true in the latter half of 1987 when the gross national product (GNP) grew by more than five percent and the Philippine markets experienced a boom.
Recommended Citation
Aquino, Richard; Balani, Mahender; and Quizon, Ronnie
(1989)
"The Philippine Stock Market: Its Link to the National Economy,"
DLSU Business & Economics Review: Vol. 2:
No.
2, Article 11.
DOI: https://doi.org/10.59588/2243-786X.1485
Available at:
https://animorepository.dlsu.edu.ph/ber/vol2/iss2/11
