Stock Market Development and Economic Growth: The Case of Selected African Countries

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Periodical article

Title:	Stock Market Development and Economic Growth: The Case of Selected African Countries
Authors:	Adjasi, Charles K.D. Biekpe, Nicholas B.
Year:	2006
Periodical:	African Development Review
Volume:	18
Issue:	1
Period:	April
Pages:	144-161
Language:	English
Geographic term:	Africa
Subjects:	financial market economic development Development and Technology Economics and Trade
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2006.00136.x/pdf
Abstract:	This paper studies the effect of stock market development on economic growth in 14 African countries in a dynamic panel data modelling setting. Results largely show a positive relationship between stock market development and economic growth. Further analyses, based on the level of economic development and stock market capitalization, are also conducted. The results reveal that the positive influence of stock market development on economic growth is significant for countries classified as upper middle income economies. On the basis of market capitalization groupings, stock market developments play a significant role in growth only for moderately capitalized markets. The general trend in results shows that low income African countries and less developed stock markets need to grow more and develop their markets to elicit economic gains from stock markets. App., bibliogr., notes, sum. [Journal abstract]