Stock Market Development and Economic Growth: A Comparative Evidence from two Emerging Economies in Africa – Nigeria and South Africa

Osakwe, Charity Ifunanya; Ananwude, Amalachukwu Chijindu

doi:10.9734/acri/2017/38116

Cited by 16 publications

(14 citation statements)

References 14 publications

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“…The results revealed that market capitalization and value of transactions positively impacted economic growth. Osakwe and Ananwude (2017) examined the relationship between stock market development and economic growth in Nigeria and South Africa from 1981 to 2015 using ARDL co-integration techniques. The GDP growth rate measured economic growth, while market capitalization ratio and stock value traded ratio surrogated stock market development.…”

Section: Empirical Reviewmentioning

confidence: 99%

Stock market development and agricultural growth of emerging economies in Africa

Ngong

Thaddeus

Asah

et al. 2022

JCMS

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PurposeThis research investigates the bond between stock market development and agricultural growth in African emerging economies from 1990 to 2020.Design/methodology/approachAgricultural value added to the gross domestic product measures agricultural growth and market capitalization and stock value traded measure stock market development.FindingsThe findings disclose that market capitalization negatively affects agricultural growth while stock value traded positively affects agricultural growth in the fully modified and dynamic ordinary least square techniques. The findings unveil bidirectional causality between labour and agricultural value added with unidirectional causality flow from agricultural value added to market capitalization and stock value traded.Research limitations/implicationsThe governments should promote agricultural growth initiatives which stimulate stock market development. Effective methods required to encourage credit flow to the agricultural enterprises through the stock markets' intermediation should be promoted using aggressive policies which eliminate credit flow bottlenecks. Policy makers and regulatory authorities should implement policies which attract investors to the agricultural sector and encourage companies' listing in the stock markets. The capital market funding should be expanded to boost economic growth through agricultural value added.Originality/valueLiterature reveals divergent results on the relationship between stock market development and agricultural growth. Earlier studies provide conflicting findings on the bond between stock market development and agricultural growth. Some findings indicate positive link between stock market development and agricultural growth, while others show a negative association. Studies' results reveal opposing directions of causality between stock market development and agricultural growth.

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Section: Empirical Reviewmentioning

confidence: 99%

Stock market development and agricultural growth of emerging economies in Africa

Ngong

Thaddeus

Asah

et al. 2022

JCMS

View full text Add to dashboard Cite

show abstract

“…Both market capitalization and total value of shares has revealed negative and insignificant correlation with economic development in the long run. Additionally, Osakwe and Ananwude (2017) concluded that there exists a positive but insignificant association between stock market development and GDP growth in Nigeria.…”

Section: Review Of Related and Empirical Literaturementioning

confidence: 99%

Capital Market Development and Economic Growth: An Ardl Approach for Saudi Arabia, 1985–2018

Algaeed

2020

Journal of Business Economics and Management

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The aim of this paper is to analyze and test the effects of capital market development on the per-capita GDP growth in Saudi Arabian economy covering the period of 1985-2018. An ARDL, FMOLS and Johansen tests are implemented. The stock market indicators: share price index, capitalization, liquidity, number of share transactions, and number of shares are employed using a log-linear eclectic model designed to fit the availability of data. Capitalization and liquidity came up with negative signs, contrary to the findings of lots of studies in economic literature. However, the share price index, number of shares traded, and the ratio of number of share transactions had the right signs as expected a priori. The findings raise serious questions about the size of the market, the steps and efforts that have been taken to deepen the capital market and their consequences on the function and potency of capital market in fostering per-capita GDP growth. Applying Granger causality test, share price index, market capitalization and number of shares traded do not granger cause per-capita GDP. They are significant at 5 percent level. Capital market authority (CMA) should draw a road map to accelerate deepening the capital market in order to serve economic growth.

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“…The growth rate of the Gross Domestic Product ( tce ) is usually used as a measure of economic growth (Osakwe and Ananwude, 2017). We will use the real GDP growth rate as part of the study to assess the evolution of economic growth in WAEMU countries.…”

Section: Model Specificationmentioning

confidence: 99%

Do the Stock Markets Positively Impact Economic Growth in Waemu1?

Nahoussé¹

2018

JEDS

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This study analyzes the effect of stock market activity on WAEMU economic growth. A linear growth model is estimated on a panel of six (06) WAEMU countries for the period 1998-2015. The annual data come from the World Bank, the BRVM 3 and the BCEAO 4. The results show that official development assistance and market capitalization have a positive influence on WAEMU's economic activity. Thus, privatizations, tax relief, good governance are to be encouraged at the state and company level.

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Stock Market Development and Economic Growth: A Comparative Evidence from two Emerging Economies in Africa – Nigeria and South Africa

Cited by 16 publications

References 14 publications

Stock market development and agricultural growth of emerging economies in Africa

Stock market development and agricultural growth of emerging economies in Africa

Capital Market Development and Economic Growth: An Ardl Approach for Saudi Arabia, 1985–2018

Do the Stock Markets Positively Impact Economic Growth in Waemu1?

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