The Impact of Stock Market Liquidity on Economic Growth in Jordan

This paper identifies the position of stock market liquidity at Amman Stock Exchange (ASE) during the period from 1991 to 2011 . For measurements of liquidity at ASE we have used tow measuring tools as; market capitalization to GDP, the turnover ratio. Also, The research aims to test the relationship between these indicators and the economic growth represented by the growth rate of GDP. The model adopted for testing the relationship is the simple linear regression model. It has been found that market capitalization to GDP doesn't exert significant effect upon the economic growth but the turnover ratio has significant effect upon the economic growth. Keywords: Economic growth, stock market liquidity, GDP, ASE, Amman Stock Exchange, turnover ratio, market capitalization