Postprint of: Niblock, SJ, Heng, P & Sloan, K 2014, 'Regional stock markets and the economic development of Southeast Asia', Asian-Pacific Economic Literature, vol. 28, no. 1, pp. 47-59.
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The paper examines the contribution made by the establishment and operation of a local stock exchange to the economic development of Southeast Asian (SEA) countries. The paper informs investors and policymakers about the current status of SEA stock market development and the associated positive and negative effects of such initiatives. Policymakers have placed a clear focus on SEA stock markets as a primary driver of regional economic growth. However, it is questionable whether SEA is ready for such an ambitious economic initiative, particularly given the reported negative effects of lesser developed stock markets. Despite these negative implications, the beneﬁts appear to outweigh the costs for SEA stock markets. It is perceived that SEA stock markets will drive further economic reform, ﬁnancial liberalisation, and market integration, promising tremendous beneﬁts for both the region and the international investment community. The paper concludes with questions regarding the efﬁciency of stock markets in SEA and offers recommendations for further empirical research.