Abstract
Abstract Various regression models have been used to estimate the effect of economic variables in stock markets development using pooled time series - cross sectional data from 1994-2002. It is found that gross domestic product, saving ratio, the ratio of domestic credit presented to private sector and value traded ratio were significantly explain market capitalization ratio. Whereas inflation rate, investment ratio and money supply ratio don’t explain market capitalization ratio. Also we found that stock market Development and financial intermediate development are complements rather than substitute. .
