Relational Analysis of Global Private Equity and GDP of Eight Major Economies

Abstract

In this study, we examine the importance of venture capital by determining the relationship of the quarterly returns of Global Growth Equity indexes to the percentage change in quarterly GDP of eight major economies: Canada, the European Union, France, Italy, Germany, Japan, the United Kingdom, and the United States. For the purposes of our study, we use regression analysis to investigate the effects of Global Growth Equity index returns on the percentage change in GDP. We observe that the Global Growth Equity Index (U.S.) is the only factor that is able to explain the change in GDP of two countries in our study, Canada and France.

TOPICS: Private equity, developed, performance measurement, statistical methods