Impacts of Macroeconomic Factors on the Stock Market in Estonia
Yu Hsing

This paper finds that the Estonian stock market index is positively affected by the debt/GDP ratio, real GDP and the German stock market index and is negatively associated with the exchange rate, the domestic interest rate, the expected inflation rate, and the euro area government bond yield. To promote a robust stock market, the authorities are expected to pursue sustainable fiscal policy, economic growth, a stronger currency, and a relatively low interest rate or expected inflation rate.

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