Financial Markets and Economic Growth Dynamics in PostCOVID-Africa: A Comparative Study of the Stock Exchanges of Morocco, Egypt, Nigeria, South Africa, and Rwanda (2021–2024)

Marchés financiers et dynamique de la croissance économique en Afrique post-COVID: une étude comparative des places boursières du Maroc, de l’Égypte, du Nigeria, de l’Afrique du Sud et du Rwanda (2021–2024)

Yassine Zougari and Mounir Bakkouchi
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Yassine Zougari: University Ibn Toufail = Université Ibn-Tufayl = جامعة ابن طفيل, Laboratoire des Sciences Economiques et Politiques Publiques (LSEPP) Faculté d’Economie et de Gestion de Kénitra
Mounir Bakkouchi: University Ibn Toufail = Université Ibn-Tufayl = جامعة ابن طفيل, Laboratoire des Sciences Economiques et Politiques Publiques (LSEPP) Faculté d’Economie et de Gestion de Kénitra

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Abstract: This article investigates the impact of financial market development on economic growth in five African economies (Morocco, Egypt, Nigeria, South Africa, and Rwanda) during the period 2021–2024, focusing on the post-COVID-19 recovery phase. The literature review is based on a structured narrative review, drawing on 39 studies selected for their theoretical relevance and empirical robustness. The empirical study employs a panel dataset compiled from the World Bank, UNCTAD, and national stock exchanges. The relationship between stock market capitalization, trading volumes, foreign direct investment (FDI) inflows, a multidimensional financial development index, and real GDP growth is estimated primarily using a fixed-effects panel model, selected based on the Hausman test and estimated with robust standard errors. Additional GMM estimations are employed solely as robustness checks to assess the stability of the results and to address potential endogeneity issues. The findings reveal a positive and statistically significant effect of stock market depth and liquidity on economic growth. FDI inflows are identified as a key driver of the post-pandemic recovery, whereas inflation shows a negative and significant impact on economic performance. These results highlight the importance of deepening financial markets, promoting financial inclusion, and maintaining macroeconomic stability to fully leverage the role of finance in supporting sustainable and inclusive growth across African economies.

Keywords: Africa; Economic growth; Post-COVID-19. JEL Classification : G10 O16 047 Financial markets; FDI; Panel data; Afrique; IDE; Panel de données; Croissance économique; Marchés financiers (search for similar items in EconPapers)
Date: 2025-12-31
Note: View the original document on HAL open archive server: https://hal.science/hal-05441175v1
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Published in International Journal of Accounting, Finance, Auditing, Management and Economics, 2025, Volume 7, Issue 01 (2026), pp. 207-227, Volume 7, Issue 01 (2026), (Issue 01 (2026),), pp. 207-227. ⟨10.5281/zenodo.18101609⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05441175

DOI: 10.5281/zenodo.18101609

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