Causality tests between stock market development and economic growth in West African Monetary Union

Maman Tachiwou Aboudou ()
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Maman Tachiwou Aboudou: Shanghai University of Finance and Economics, China

Economia. Seria Management, 2009, vol. 12, issue 2, 14-27

Abstract: This paper examines the causal relationship between stock market development and economic growth for the West African Monetary Union economy over the last decade or so. By applying the techniques of unit–root tests and the long–run Granger non-causality test proposed by Toda and Yamamoto (1995), the causal relationships between the real GDP growth rate and two stock market development proxies are tested. The results are in line with the supply leading hypothesis in the sense that there is strong causal flow from the stock market development to economic growth. A unidirectional causal relationship is also observed between real market capitalization ratio and economic growth.

Keywords: stock market development; economic growth; Toda and Yamamoto causality test; West African Monetary Union (search for similar items in EconPapers)
JEL-codes: E2 G28 G32 O55 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:rom:econmn:v:12:y:2009:i:2:p:14-27

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