Financial Development and Economic Growth in Selected African Countries: Any Role for Stock Markets? - Sviluppo finanziario e crescita economica in una selezione di paesi africani: quale ruolo per i mercati azionari?

Sakiru Solarin and Jauhari Dahalan
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Jauhari Dahalan: School of Economics, Finance and Banking, College of Business,, Postal: Kedah, Malaysia, http://uum.edu.my/index.php/en/

Economia Internazionale / International Economics, 2014, vol. 67, issue 1, 151-179

Abstract: With special emphasis on the influence of stock market development, this paper examines the impact of financial development on economic growth in selected African countries over the period from 1990 to 2009. Using the GMM approach, results suggest that African stock market, in terms of liquidity, is positively associated with economic growth. Further findings demonstrate stock markets as being better than the banking sector in boosting economic growth. The foregoing findings imply that financial development should be accorded priority with special focus on liquidity of stock markets, when considering economic expansion in Africa. The major and unique contribution of this study is the simultaneous investigation of the impacts of stock markets and banks on the economic growth of the selected African countries. - L’oggetto di questo studio è l’impatto dello sviluppo finanziario sulla crescita economica in una selezione di paesi africani nel periodo 1990-2009, riservando particolare attenzione all’influenza dei mercati azionari. Usando un approccio GMM (Generalised Method of Moments), i risultati suggeriscono che, in termini di liquidità, il mercato azionario africano è associato positivamente alla crescita economica. Ulteriori evidenze mostrano che i mercati azionari incentivano la crescita meglio dei sistemi bancari. Tali risultati implicano quindi che, quando si prende in considerazione lo sviluppo economico in Africa, le politiche finanziarie dovrebbero dare priorità a programmi di liquidità dei mercati azionari. Il maggiore contributo di questo studio è la simultanea analisi dell’impatto dei mercati azionari e bancari sulla crescita economica nei paesi africani considerati.

Keywords: Stock Markets; Banks; Africa; GMM (search for similar items in EconPapers)
JEL-codes: G15 G21 O16 (search for similar items in EconPapers)
Date: 2014
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