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Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries

In this study, we investigate the impact of financial development on economic growth in 11 selected African countries over the period 1990 through 2009, with special emphasis on the contribution of stock market development. Besides, the study examines the relative importance of stock market and bank...

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Main Author: Adebola, Solarin Sakiru
Format: Thesis
Language:English
Published: 2011
Subjects:
HC Economic History and Conditions
Online Access:https://etd.uum.edu.my/3431/1/SOLARIN_SAKIRU_ADEBOLA.pdf
https://etd.uum.edu.my/3431/
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spelling my.uum.etd.34312022-04-11T00:04:44Z https://etd.uum.edu.my/3431/ Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries Adebola, Solarin Sakiru HC Economic History and Conditions In this study, we investigate the impact of financial development on economic growth in 11 selected African countries over the period 1990 through 2009, with special emphasis on the contribution of stock market development. Besides, the study examines the relative importance of stock market and banking sector on economic growth; and the existence of supply leading hypothesis in the selected countries. In achieving these objectives, the study includes numerous control variables such as initial income, population growth rate, human capital, government expenditure, money supply, foreign direct investment, interest rates and inflation rate. The methodology is basically divided into two with GMM system approach and panel cointegration techniques utilized on panel data, while ARDL is employed in the time series analysis. The sample includes South Africa, Egypt, Nigeria, Morocco, Kenya, Botswana, Cote D’Ivoire, Tunisia, Ghana, Mauritius and Swaziland. The panel and time series results indicate that stock market, in terms of liquidity, is positively associated with economic growth (except in Morocco, Tunisia, Nigeria and Cote D’Ivoire). The findings further suggest that stock markets perform better than banking sector in most of the countries (with the exception of Botswana, Ghana and Nigeria). There is also evidence for supply leading hypothesis (with the exception of Cote D’Ivoire, Tunisia, Swaziland and Ghana). Generally, the implication is that financial development should be given priority with special emphasis on liquidity of stock markets in Africa. The study has numerous contributions. For instance, to our knowledge, this is first study to simultaneously consider the impact of stock markets and banks on economic growth in African countries. 2011 Thesis NonPeerReviewed text en https://etd.uum.edu.my/3431/1/SOLARIN_SAKIRU_ADEBOLA.pdf Adebola, Solarin Sakiru (2011) Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries. PhD. thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Adebola, Solarin Sakiru
Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries
description In this study, we investigate the impact of financial development on economic growth in 11 selected African countries over the period 1990 through 2009, with special emphasis on the contribution of stock market development. Besides, the study examines the relative importance of stock market and banking sector on economic growth; and the existence of supply leading hypothesis in the selected countries. In achieving these objectives, the study includes numerous control variables such as initial income, population growth rate, human capital, government expenditure, money supply, foreign direct investment, interest rates and inflation rate. The methodology is basically divided into two with GMM system approach and panel cointegration techniques utilized on panel data, while ARDL is employed in the time series analysis. The sample includes South Africa, Egypt, Nigeria, Morocco, Kenya, Botswana, Cote D’Ivoire, Tunisia, Ghana, Mauritius and Swaziland. The panel and time series results indicate that stock market, in terms of liquidity, is positively associated with economic growth (except in Morocco, Tunisia, Nigeria and Cote D’Ivoire). The findings further suggest that stock markets perform better than banking sector in most of the countries (with the exception of Botswana, Ghana and Nigeria). There is also evidence for supply leading hypothesis (with the exception of Cote D’Ivoire, Tunisia, Swaziland and Ghana). Generally, the implication is that financial development should be given priority with special emphasis on liquidity of stock markets in Africa. The study has numerous contributions. For instance, to our knowledge, this is first study to simultaneously consider the impact of stock markets and banks on economic growth in African countries.
format Thesis
author Adebola, Solarin Sakiru
author_facet Adebola, Solarin Sakiru
author_sort Adebola, Solarin Sakiru
title Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries
title_short Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries
title_full Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries
title_fullStr Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries
title_full_unstemmed Financial Development and Economic Growth Nexus: A Study of The Role of Stock Markets and Banking Industry in Selected African Countries
title_sort financial development and economic growth nexus: a study of the role of stock markets and banking industry in selected african countries
publishDate 2011
url https://etd.uum.edu.my/3431/1/SOLARIN_SAKIRU_ADEBOLA.pdf
https://etd.uum.edu.my/3431/
_version_ 1731228138044653568
score 13.211869

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