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Stock Market Development and Economic Growth: Evidence from Africa
Euro-Asian Journal of Economics and Finance
View Archive Info| Field | Value | |
| Title |
Stock Market Development and Economic Growth: Evidence from Africa
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| Creator |
Ogochukwu, Onwukeme Obianuju
Raifu, Isiaka Akande |
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| Subject |
Stock Market Development; Economic Growth in Africa; Panel Data Analysis; Cross Sectional Dependence Test
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| Description |
Arising from the mixed results in existing literature on the relationship between stock market development indicators and economic growth for both developed and developing countries, this study sets out to reexamine the relationship between stock market development and economic growth with reference to Africa. Employing various panel estimation techniques and estimating models of stock market size and liquidity plus an aggregate stock market model, our results indicate that stock market development indicators positively and significantly affect economic growth. We also test for cross-sectional dependence for the countries considered using the cross-section independence test of Pesaran. The results reveal that the null hypothesis of no cross-sectional dependence is rejected implying the existence of cross sectional dependence. In the light of our empirical findings, we make important policy recommendations: policy makers in Africa should encourage greater stock market development via sound macroeconomic policies coordination that will ensure further integration of African stock markets. Also, there should be a proper regulation of these stock markets to reduce all forms of distortions that will impede the efficiency of the stock markets.
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| Publisher |
Academy of Business & Scientific Research
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| Date |
2017-01-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://absronline.org/journals/index.php/eajef/article/view/683
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| Source |
Euro-Asian Journal of Economics and Finance; Vol 5 No 1 (2017): January; 23-44
2310-4929 2310-0184 |
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| Language |
eng
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| Relation |
http://absronline.org/journals/index.php/eajef/article/view/683/704
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| Rights |
Copyright (c) 2017 Euro-Asian Journal of Economics and Finance
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