Contemporaneous correlation coefficients between per capita growth and market capitalization to GDP ratio calculated for 35 countries reveal highest correlations for emerging economies. The paper explains this phenomenon in an extended Lucas (Econmetrica 46(6):1429–1445, 1978) asset pricing model with production, accumulation and growth with two separately added additional features, international borrowing by domestic firms and holding of domestic shares by foreign agents. It is shown that in the first scenario, growth enhancing productivity shock increases market capitalization ratio in the short run and in the second, a positive demand shock increases short run growth. The model is calibrated using quarterly Indian data.

中文翻译：

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了解新兴经济体股票市场与增长之间的短期关系

计算出的35个国家的人均增长率与市值与GDP比率之间的同时相关系数表明，新兴经济体的相关性最高。本文在扩展的卢卡斯（Econmetrica 46（6）：1429–1445，1978）资产定价模型中解释了这种现象，该模型具有生产，积累和增长的特征，并具有两个分别添加的附加功能，即国内公司的国际借贷和外资公司的国内持股。代理商。结果表明，在第一种情况下，增长促进生产率的冲击在短期内会增加市值率，在第二种情况下，积极的需求冲击会增加短期的增长。该模型使用季度印度数据进行校准。