IDEAS home Printed from https://ideas.repec.org/a/rfa/aefjnl/v2y2015i1p91-101.html
   My bibliography  Save this article

Does Stock Market Capitalization Influences Economic Growth in Africa? : Evidence from Panel Data

Author

Listed:
  • Mohamed Jalloh

Abstract

The question as to whether stock markets play a significantly positive role in influencing the rate at which economies grow has been seriously debated by economists as well as policymakers. The bone of contention, however, is the fact that the prevailing empirical evidences on the nexus between stock market capitalization and economic growth is still mixed. This study, therefore, aims at providing further evidence on the relationship between stock market capitalization and economic growth using recent data from a sample of African countries with well-functioning stock markets. A dynamic panel estimation approach is employed with a view to assessing the relative impact of stock market capitalization on economic growth in Africa. The results from the study reveal that raising stock market capitalization by a marginal average of 10% induces growth on average by 5.4% in countries studied. The positive and significant relationship between stock market capitalization and economic growth as found in this study provides encouraging signals for African countries to explore stock markets as a potential avenue for expediting economic growth. There is therefore a dire need for policymakers in Africa to direct attention towards the implementation of policy measures that will encourage the development of stock markets with a view to promoting economic growth.

Suggested Citation

  • Mohamed Jalloh, 2015. "Does Stock Market Capitalization Influences Economic Growth in Africa? : Evidence from Panel Data," Applied Economics and Finance, Redfame publishing, vol. 2(1), pages 91-101, February.
  • Handle: RePEc:rfa:aefjnl:v:2:y:2015:i:1:p:91-101
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/aef/article/view/641/585
    Download Restriction: no

    File URL: http://redfame.com/journal/index.php/aef/article/view/641
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eleanya K. Nduka & Ugochukwu E. Anigbogu & Ishaku R. Nyiputen, 2016. "Investigating the Causal Relationship Between Stock Market and Aggregate Economic Performance of South Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(4), pages 218-227, April.
    2. Akpokerere Othuke Emmanuel & Okoroyibo Eloho Elizabeth, 2020. "Capital Market Performance as a Panacea for Economic Growth in Nigeria," International Business Research, Canadian Center of Science and Education, vol. 13(2), pages 1-1, February.
    3. António Afonso & M. Carmen Blanco-Arana, 2022. "Financial and economic development in the context of the global 2008-09 financial crisis," International Economics, CEPII research center, issue 169, pages 30-42.
    4. António Afonso & M. Carmen Blanco-Arana, 2018. "Financial Development and Economic Growth: A Study for OECD Countries in the Context of Crisis," Working Papers REM 2018/46, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    5. Maku Affor Owen, 2020. "Stock Market Development and Economic Growth: Empirical Evidence From an Institutional Impaired Economy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 496-509, October.

    More about this item

    Keywords

    Stock market; Capitalization; Dynamic panel; Economic growth; Africa;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:aefjnl:v:2:y:2015:i:1:p:91-101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.