The impact of the capital market on economic growth in Luxembourg


  • Łukasz Wójtowicz Casimir Pulaski Radom University
  • Rafał Czupryn Casimir Pulaski Radom University



GRETL, GARCH, OLS, economic growth, capital market


In this article, a detailed analysis of the impact of capital markets on economic growth in Luxembourg is presented, utilizing annual economic data. The study spanned from 1975 to 2020. As part of the analysis, an econometric model was constructed and estimated using the GRETL software. The results obtained confirm that the capital market has a statistically significant impact on Luxembourg's economic development. This research provides new insights into the role of capital markets in shaping economic growth dynamics, which is crucial for understanding the economic mechanisms in small, open economies like Luxembourg.


Download data is not yet available.


Alshubiri, F., The stock market capitalisation and financial growth nexus: an empirical study of western European countries, Future Business Journal, 7, 46, 2021.

Asteriou D., Spanos K., The relationship between financial development and economic growth during the recent crisis: Evidence from the EU, Finance Research Letters, Vol. 28, 2019.

Batuo M., Mlambo K., Asongu S., Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa, Research in International Business and Finance, Vol. 45, 2018.

Bosma N., Content J., Sanders M. Institutions, entrepreneurship, and economic growth in Europe, Small Bus Econ 51, 2018.

Brainard W., Tobin J., Pitfalls in Financial Model-building, American Economic Review, vol. 58, 1968.

Caporale G. M., Howells P. G. A., Soliman A. M., Endogenous Growth Models and Stock Market Development: Evidence from Four Countries, Review of Development Economics, Vol. 9, No. 2, 2005.

Caporale, G. M., Rault, C., Sova, A. D., Sova, R. Financial development and economic growth: Evidence from 10 new European Union members, International Journal of Finance & Economics, 20 (1), 2015.

Domańska S. A., Dopasowanie modeli GARCH a jakość uzyskanych prognoz, Metody Ilościowe w Badaniach Ekonomicznych, t. XXI/3, 2020.

Durusu-Ciftci, D. Ispir M. S., Yetkiner H., Financial development and economic growth: Some theory and more evidence, Journal of Policy Modeling, Vol. 39, Issue 2, 2017.

Filipowicz K., Wpływ interakcji przestrzennych na zróżnicowanie rozwoju gospodarczego Polski, wydawnictwo Uniwersytetu Jagiellońskiego, wyd. I, Kraków, 2019.

Fiszeder P., Modele klasy GARCH w empirycznych badaniach finansowych, Wydawnictwo Naukowe Uniwersytetu Mikołaja Kopernika, Toruń, 2009.

Guru, B.K. Yadav, I.S., Financial development and economic growth: panel evidence from BRICS, Journal of Economics, Finance and Administrative Science, Vol. 24 No. 47, 2019.

Hartana, H., Initial public offering (ipo) of capital market and capital market companies in Indonesia, Ganesha Law Review, 1(1), 2019.

Jin D., Boubakari A., The Role of Stock Market Development in Economic Growth: Evidence from Some Euronext Countries, International Journal of Financial Research, vol. 1, no. 1. 2010.

King R. G., Levine R., Finance and Growth. Schumpeter Might Be Right, „The Quarterly Journal of Economics”, Vol. 108, No. 3, 1993.

Kuznets S. Economic growth and income inequality. The gap between rich and poor, Routledge, 2019.

Maciejewska J., Metody odpornej estymacji dla modeli klasy GARCH, Studia i Prace Wydziału Nauk Ekonomicznych i Zarządzania, nr 10, 2008.

Malkiel B., A Random Walk Down Wall Street, W.W. Norton & Company, New York, 1999.

McClelland, D. C., The achievement motive in economic growth. In the gap between rich and poor, Routledge. 2019.

Omonov, S., Institutional investors and robo-advisors in the capital market: specific features and foreign experience, International Finance and Accounting: Vol. 3, 2021.

Pan L., Mishra V., Stock market development and economic growth: Empirical evidence from China, Economic Modelling, Volume 68, 2018.

Stulz R., Does Financial Structure Matter for Economic Growth? A Corporate Financew Perspectives, [in:] A. Demirgüç-Kunt, R. Levine (ed.), Financial Structure and Economic Growth. A Cross- Country Comparison of Banks, Markets, and Development, The MIT Press, Cambridge Masschussets, London, 2004.

Tan W., Yu S., Ma Z., The Impact of Business Groups on Investment Efficiency: Does Capital Allocation Matter?, Emerging Markets Finance and Trade, 54:15, 2018.




How to Cite

Wójtowicz, Łukasz, & Czupryn, R. (2023). The impact of the capital market on economic growth in Luxembourg. Central European Review of Economics & Finance, 44(3), 175–185.