Stock Market Development and Economic Growth: An Empirical Analysis of Zimbabwe (1989-2014)

Magweva, Rabson; Mashamba, Tafirei

doi:10.5817/fai2016-3-2

Cited by 5 publications

(3 citation statements)

References 17 publications

(24 reference statements)

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“…More specifically, the indirect link between the stock market and other sectors that have considerable influence on economic growth has remained significantly ineffective. Besides, the findings from the ARDL bounds test for Nigeria that there is no long-run association between stock market development and the country's economy coupled with the suggestive assertions are strongly in consonance with the findings of (Enisan and Olufisayo, 2009) for seven sub-Saharan African countries, (Ovat, 2012) for one country, (Osamwonyi and Kasimu, 2013) for three African countries, (Magweva and Mashamba, 2016) for one country.…”

Section: Empirical Results and Discussionsupporting

confidence: 72%

West African Emerging Economies: Comparative Insights on Ghana’s and Nigeria’s Stock Market Development

Fagbemi¹,

Ajibike²

2022

American Journal of Economics and Business Administration

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The study examines the long-run and causal relationship between stock market development and West African emerging economies in a comparative context of Ghana and Nigeria. Based on Autoregressive Distributed Lag (ARDL) bounds test approach, the findings support the evidence of long-run cointegration between stock market development and economic growth in Ghana, whereas further evidence reveals an insignificant positive long-run impact on economic growth. In contrast, there is no long-run cointegration between stock market indicators and economic growth in Nigeria. Furthermore, in the context of the Vector Error Correction Model (VECM) and Vector Autoregressive model (VAR) for Ghana and Nigeria respectively, the Granger causality test indicates that the direction of causality only runs from economic growth to stock market development, unidirectional) in both countries. Nonetheless, the empirical evidence on growth-led finance is specifically feeble in Nigeria. Given these results, the paper posits that stock markets could well play a crucial role in stimulating growth in West Africa. However, to attain this goal, there is a need to launch reforms that entail the overhaul of the legal and regulatory framework as well as principles underlying effective supervision. Also, Ghana and Nigeria should ensure that the stock markets are properly integrated into their respective economies and the strong integration of the two markets through robust institutional and governance structures. These could thus foster the development of stock markets in the two countries.

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Section: Empirical Results and Discussionsupporting

confidence: 72%

West African Emerging Economies: Comparative Insights on Ghana’s and Nigeria’s Stock Market Development

Fagbemi¹,

Ajibike²

2022

American Journal of Economics and Business Administration

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“…Capturing the stock market influence on economic growth with a single indicator is utterly impossible. However, from the existing empirical literature, we found three common indicators widely used by researchers (see, for example, Adjasi and Biekpe 2006;Bekhet et al 2017;Demetriades and Hussein 1996;Gamolya 2006;De Gregorio and Guidotti 1995;Magweva and Mashamba 2016;Prats and Sandoval 2016;Van Nieuwerburgh et al 2006). This present study also deploys these commonly used three indicators.…”

Section: Variable Definition and Sourcesmentioning

confidence: 99%

Financial Innovation, Stock Market Development, and Economic Growth: An Application of ARDL Model

Qamruzzaman

Jiang

2018

IJFS

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This study aims to explore the relationship between economic growth, financial innovation, and stock market development of Bangladesh for the period 1980–2016. To investigate long-run cointegration, this study used the autoregressive distributed lagged (ARDL) bounds testing approach. In addition, the Granger-causality test is used to identify directional causality between research variables under the error correction term. Study findings from the ARDL bound testing approach confirm the existence of a long-run association between financial innovation, stock market development, and economic growth. Furthermore, the findings from the Granger-causality test support bidirectional causality between financial innovation, economic growth and stock market development, and economic growth both in the long run and short run. These findings support the theory that market-based financial development and financial innovation in the financial system can spur economic development.

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“…From the findings of the study, stock prices are not a leading indicator of macroeconomic variables in Nigeria and movements in stock prices cannot actually be explained by macroeconomic factors. Magweva and Mashamba (2016) examined the relationship between stock market and economic growth in Zimbabwe between 1989 and 2014. The VECM results revealed long run negative relationship between stock market development and economic growth, whereas the short run coefficients were insignificant.…”

Section: Literature Reviewmentioning

confidence: 99%

Does stock market-based financial development promotes economic growth in emerging markets?: New evidence from Nigeria

Nathaniel¹,

Omojolaibi²,

Ezeh³

2020

Serb J Management

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The capital market is an important facilitator of economic growth. The capital market is a sub-set of the financial system that serves as an engine of growth in modern economies. Donwa & Odia (2010) identified the capital market as an institution that contributes to the socio-economic growth and development of emerging economies. Apart from the judicious mobilization of idle savings into productive use, the stock market creates an avenue for foreign investment and does stock MArket-BAsed FinAnciAl developMent proMotes econoMic Growth in eMerGinG MArkets? new evidence FroM niGeriA solomon prince nathaniel * , Joseph Ayoola omojolaibi and chikaodili Josephine ezeh

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Stock Market Development and Economic Growth: An Empirical Analysis of Zimbabwe (1989-2014)

Cited by 5 publications

References 17 publications

West African Emerging Economies: Comparative Insights on Ghana’s and Nigeria’s Stock Market Development

West African Emerging Economies: Comparative Insights on Ghana’s and Nigeria’s Stock Market Development

Financial Innovation, Stock Market Development, and Economic Growth: An Application of ARDL Model

Does stock market-based financial development promotes economic growth in emerging markets?: New evidence from Nigeria

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