Stock market development and economic growth: Evidence from seven sub-Sahara African countries

Effects of Stock Market Development on Economic Growth: Evidence from Turkey

“…The recent studies on the relationship between stock market development and economic growth are presented chronologically in the Table 1. The studies in literature have reached mixed findings depending on the country and country group. Some studies such as Ikikii and Nzomoi (2013), Rahman and Salahuddin (2010), Enisan and Olufisayo (2009), Agrawalla and Tuteja (2007), Buelens et al (2006), Adjasi and Biekpe (2006), Arestis et al (2001) and Levine and Zervos (1998) found that stock markets development have had positive effect on economic growth while Haque (2013) and Ake and Ognaligui (2010) found that stock markets development have not had any significant effect on economic growth. There was a unidirectional causal flow from stock market capitalization to economic growth, and a causal flow from economic growth to stock market turnover in the short and long run and a casual from stock market turnover to economic growth in the short term, and a causality flow from economic growth to stock market traded value in the short term.…”

A Re-Assessment of the Role of the Financial Sector in Driving Economic Growth: Recent Evidence from Cross Country Data

“…Very few studies have used the indicators of stock market development such as market capitalization as percentage of GDP (MARCAP), value traded as percentage of GDP (STRADED), turnover ratios, and number of listed companies (COMP) to study the level of financial development (Harris, 1997;Levine and Zervos, 1998;Enisan & Olufisayo, 2009). For banking and stock market development, we employ all the above mentioned variables except turnover ratios due to missing observations for large number of countries and instead we have considered number of listed companies to capture the level of financial development in the sample countries.…”

Malaysian Stock Market: A Spur to the Country’s Economic Growth

“…The empirical evidence presented involves 47 countries over the period from 1976 to 1993. Similarly, a study by Enisan and Olufisayo (2009) showed that stock market is co-integrated with economic growth. Using an autoregressive distributed lag (ARDL) bounds test on 24-year (1980-2004) data from seven African countries, results of the study show that the stock markets in Egypt and South Africa significantly affect the countries' economic growth.…”

“…Previous studies provide evidence on the relationship between financial markets and economic growth (Levine & Zervos, 1998;Arestis, Demetriades, & Luintel, 2001;Enisan & Olufisayo, 2009;Azman-Saini et al, 2010;Choong et al, 2010;Thumrongvit et al, 2013;Ngare et al, 2014;Bayar, Kaya, & Yildirim, 2014). They show that a country's economic activities are significantly influenced by the development of the banking sector, the bond market and the stock market.…”

“…Even though there are studies that show the negative effects of capital market on economic growth (Calvo, 1998;Reisen & Sato, 2001), many studies provide empirical evidence on its contribution towards economic growth (Levine & Zervos, 1998;Enisan & Olufisayo, 2009;Azman-Saini, Law, & Ahmad, 2010;Choong, Baharumshah, Yusop, & Habibullah, 2010;Thumrongvit, Kim, & Pyun, 2013;Ngare, Nyamongo, & Misati, 2014).…”