Early-demographic dividend | Stocks traded, turnover ratio of domestic shares (%)
Turnover ratio is the value of domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12. Development relevance: Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information which can lower transaction costs and subsequently improve resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations. Limitations and exceptions: Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Only domestic shares are used in order to be consistent with domestic market capitalization. Statistical concept and methodology: Turnover ratio is the value of electronic order book (EOB) domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12, according to the following formula: (Monthly EOB domestic shares traded / Month-end domestic market capitalization) x 12.
Publisher
The World Bank
Origin
Early-demographic dividend
Records
63
Source
Early-demographic dividend | Stocks traded, turnover ratio of domestic shares (%)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976 4.3766514
1977 3.72586856
1978 4.89272206
1979 14.73498807
1980 17.20514929
1981 13.32605618
1982 7.6518815
1983 16.1910369
1984 6.20762542
1985 9.52571036
1986 10.11865438
1987 15.3270356
1988 11.47246464
1989 12.56717539
1990 15.99171429
1991 15.09723932
1992 21.31715758
1993 27.33001887
1994 50.2872965
1995 29.96998034
1996 29.5647537
1997 38.68959558
1998 46.53491724
1999 33.00953031
2000 63.46771857
2001 72.84642149
2002 57.73466165
2003 47.76066753
2004 50.75034493
2005 53.0123045
2006 51.98575312
2007 47.84614624
2008 93.25494333
2009 53.48088818
2010 47.33577404
2011 49.86264295
2012 44.2007982
2013 43.93152791
2014 44.81117081
2015 45.50521878
2016 43.66241711
2017 38.2464687
2018 46.60480031
2019 35.69318014
2020 47.11056325
2021
2022
Early-demographic dividend | Stocks traded, turnover ratio of domestic shares (%)
Turnover ratio is the value of domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12. Development relevance: Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information which can lower transaction costs and subsequently improve resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations. Limitations and exceptions: Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Only domestic shares are used in order to be consistent with domestic market capitalization. Statistical concept and methodology: Turnover ratio is the value of electronic order book (EOB) domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12, according to the following formula: (Monthly EOB domestic shares traded / Month-end domestic market capitalization) x 12.
Publisher
The World Bank
Origin
Early-demographic dividend
Records
63
Source