%0 Journal Article
%T Macroeconomic Variables and the Stock Market: the Case of Lithuania
%A YU HSING
%J Review of Finance and Banking
%D 2011
%I Bucharest Academy of Economic Studies
%X Applying the EGARCH model, this paper finds that Lithuania¡¯s stock marketindex is positively impacted by real GDP, the M2/GDP ratio, and the stock market indexesin the U.S. and Germany and negatively affected by the ratio of the government deficit toGDP, the LTL/USD exchange rate or depreciation of the litas, the domestic real interest rate,the expected inflation rate, and the euro area government bond yield. Hence, a declininggovernment deficit/GDP ratio, a lower interest rate or more money supply relative to GDP,the appreciation of the litas, a lower foreign interest rate, or a robust world stock marketwould help the stock market in Lithuania.
%K stock prices
%K government deficit
%K money supply
%K exchange rate
%K interest rate
%K world stock market
%K GARCH
%U http://rfb.ase.ro/articole/PV.pdf