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Stock Market Development, Liberalization And Financial Development In The Selected Sub-Saharan African Countries

Author

Listed:
  • Wakilat BALOGUN

    (Lagos State Polytechnic, Ikorodu, Lagos)

  • Jauhari. DAHALAN

    (Universiti Utara Malaysia)

  • Sallahuddin. HASSAN

    (Universiti Utara Malaysia)

Abstract

The paper examines the long run impact of financial development and the stock market liberalization on stock market development for seven selected sub-Saharan African countries using panel dataset that spans 1990 to 2013. The study employs dynamic heterogeneous panel data analysis by using the technique of Pooled Mean Group (PMG). Results show that on average liberalizing the stock markets in the seven selected SSA countries will have positive long run effect on the economies of these countries. The long run impact of financial development on stock market development is also positive and significant. As such policy design should be tailored towards strategizing financial sector in such a way that would strengthen both the stock market and the banking sector unit of the entire financial market.

Suggested Citation

  • Wakilat BALOGUN & Jauhari. DAHALAN & Sallahuddin. HASSAN, 2016. "Stock Market Development, Liberalization And Financial Development In The Selected Sub-Saharan African Countries," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 52-65, June.
    • Handle: RePEc:rau:journl:v:11:y:2016:i:2:p:52-65
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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU16/REBE-SU16-A5.pdf
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    References listed on IDEAS

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    2. Tiamiyu, Kehinde A., 2022. "Financial deepening and stock market development in Nigeria: evidence from recent data (1981-2019)," MPRA Paper 113224, University Library of Munich, Germany.

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