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Financial Analytics: Science and Experience
 

Effects of fluctuation in the stock market on the development of industrial production

Vol. 9, Iss. 38, OCTOBER 2016

PDF  Article PDF Version

Received: 9 September 2016

Received in revised form: 22 September 2016

Accepted: 4 October 2016

Available online: 20 October 2016

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: E43, F36, G01, G14

Pages: 50-62

Kurazova D.A. Chechen State University, Grozny, Chechen Republic, Russian Federation
diana.kurazova.89@list.ru

Importance In any State, the stock market is an effective mechanism to attract and accumulate investment flows into the real sector of economy. If fluctuations in the stock market rates are examined with their influence on development indicators of industrial production, and their correlation is assessed, it will streamline articulating tactics and strategy for further development of the sectors.
Objectives The research evaluates how fluctuating stock market rates in the domestic stock market influence growth and development of industrial production sectors in Russia, thus allowing to adjust the industrial policy and its effect on the stock market and forecast a probable investment policy.
Methods I used methods of financial, graphic, statistical, comparative, regression analysis, collation, analogy.
Results The research represents a comprehensive overview of growth pace and trends of key industrial production indicators in correlation with trends in aggregate industrial indexes of the Moscow Stock Exchange. Upon the analysis, I got three regression equations that reflected the correlation of the stock market and growth rates of Russia’s industrial production.
Conclusions and Relevance As for scientific value of the research, it analyzes and substantiates the relation among key indicators of industrial production development in Russia and the domestic stock market conditions.

Keywords: stock market, sector index, industry, production

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