Democracy and Stock Market Development: The African Experience

Biswas, Rita; Ofori, Eric

doi:10.1108/s0196-382120150000031003

Cited by 3 publications

(3 citation statements)

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“…Asongu and Nwachukwu (2018) likewise considered 14 stock markets in Africa to investigate the impact of democracy on the financial market. Biswas and Ofori (2015) also provide some interesting results. However, the impact of democracy in association with entrepreneurial activity remains an open question for developing nations such as Africa.…”

Section: Theories Relevant Studies and Hypothesesmentioning

confidence: 86%

“…The number of days to start a business (Time) is around The index ranges from -10 (full autocracy) to +10 (full democracy). A higher value means a higher degree of democracy (Biswas & Ofori, 2015;Doces, 2020;Saha & Sen, 2021). The democratic accountability index (DA) produced by the International Country Risk Guide (ICRG) is also used as a robustness check.…”

Section: Measurements Of Variables and Sources Of Datamentioning

confidence: 99%

“…For example, Ajide (2019) empirically examines the relationship between democracy and stock market performance in Nigeria. In the same vein, Asongu and Nwachukwu (2018) consider 14 stock markets in Africa in investigating the impact of democracy on the financial market (also see Biswas & Ofori, 2015). The influence of political regimes on entrepreneurial activity is largely unexplored.…”

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confidence: 99%

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Institutions and Entrepreneurship in Africa: Does Democracy Matter?

Ajide

2023

The Journal of Entrepreneurship

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Previous studies on the relationship between institutions and entrepreneurship do not cover the relevance of democracy in strengthening the two variables. It is not clear whether democratic regimes promote entrepreneurship in Africa. This study contributes to the debate by examining the impact of democracy on entrepreneurship in Africa. It also provides fresh insights by analysing how democracy can strengthen the relationship between institutional quality and entrepreneurship. Panel data from 23 African nations over the period 2006–2018 is used for the study. The results based on the panel-spatial correlation consistent technique augmented with least square dummy variables (PSCC-LSDV) show that a democratic regime is more favourable for promoting entrepreneurship. Findings reveal that good institutions promote entrepreneurship, and democratic regimes strengthen the relationship. It is also found that democracy and institutional quality perform complementary roles in promoting entrepreneurship in Africa. The findings suggest that an African nation with a truly democratic system of government can encourage entrepreneurial activities within its economy by using the opportunity presented by democracy to strengthen its institutional quality.

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Section: Theories Relevant Studies and Hypothesesmentioning

confidence: 86%

Section: Measurements Of Variables and Sources Of Datamentioning

confidence: 99%

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confidence: 99%

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