The Impacts of economics on mutual funds and stock market in ASEAN countries

Abstract

This dissertation aims to examine the relationship between mutual funds, stock markets, and macroeconomic variables in six ASEAN countries including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The data for this study are quarterly panel data from year 2001 to year 2018.The study utilizes a panel vector autoregressive model and impulse response functions to analyze the relationship between mutual fund flows and stock market returns, as well as the impact of macroeconomic factors such as GDP growth rate, CPI, exchange rate, and investment growth rate. The results of this study found that all variables included in the model are interdependent and influence each other. The model also suggests that some variables have a stronger influence on others. such as the GDP variable has the strongest impact on other variables, followed by the Flow and Investment variables. The Exchange Rate variable has the weakest impact on the other variables the significant impact of the ASEAN stock market on the overall economy, the importance of economic growth for the country's overall economic performance, the impact of inflation on the ASEAN economy, and the persistence of money supply over time. The study suggests that these findings could be useful for policymakers, investors, and analysts who are interested in understanding the dynamics of the ASEAN economy and making informed decisions based on this knowledge.