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

2006; Wiley; Volume: 18; Issue: 1 Linguagem: Inglês

10.1111/j.1467-8268.2006.00136.x

1467-8268

Charles Adjasi, Nicholas Biekpe,

Monetary Policy and Economic Impact

African Development ReviewVolume 18, Issue 1 p. 144-161 Stock Market Development and Economic Growth: The Case of Selected African Countries Charles K.D. Adjasi, Charles K.D. AdjasiSearch for more papers by this authorNicholas B. Biekpe, Corresponding Author Nicholas B. Biekpe *Correspondence to Professor Nicholas Biekpe, Africa Centre for Investment Analysis, University of Stellenbosch, Business School, PO Box 610, Bellville 7535, Cape Town, South Africa; Tel:+27 21 918 4261; Fax: +27 21 918 4262; E-mail: nbiekpe@acia.sun.ca.zaSearch for more papers by this author Charles K.D. Adjasi, Charles K.D. AdjasiSearch for more papers by this authorNicholas B. Biekpe, Corresponding Author Nicholas B. Biekpe *Correspondence to Professor Nicholas Biekpe, Africa Centre for Investment Analysis, University of Stellenbosch, Business School, PO Box 610, Bellville 7535, Cape Town, South Africa; Tel:+27 21 918 4261; Fax: +27 21 918 4262; E-mail: nbiekpe@acia.sun.ca.zaSearch for more papers by this author First published: 05 September 2006 https://doi.org/10.1111/j.1467-8268.2006.00136.xCitations: 84 This paper has benefited from comments from the Economic Society of Southern Africa Biennial Conference, 7–9 September 2005, Durban, South Africa. AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Abstract 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. Citing Literature Volume18, Issue1April/Avril 2006Pages 144-161 RelatedInformation