On the Determinants of Stock Market Development in Africa

Charles Adjasi, Jabir Ibrahim Mohammed (), Joseph Dery Nyeadi and Sunil K. Bundoo ()
Additional contact information
Jabir Ibrahim Mohammed: University for Professional Studies
Joseph Dery Nyeadi: SD Dombo University of Business and Integrated Development Studies
Sunil K. Bundoo: University of Mauritius

Chapter Chapter 26 in The Economics of Banking and Finance in Africa, 2022, pp 895-928 from Palgrave Macmillan

Abstract: Abstract This chapter contributes to the determinants of stock market development in Africa in three ways. These are macroeconomics, institutional quality and natural resource revenues. The study uses panel data for the period 2000–2017 for 15 equity capital markets in Africa. Using panel fixed effect model, the study finds that stock market liquidity, investment and savings are significant and positive determinants of stock market development in Africa. The study finds that banking sector development is a substitute to stock market development instead of a complement. Similarly, we find that strong institutional quality such as control of corruption supports the development of the stock market in Africa. Finally, natural gas rent complements stock market development while forest rent hurts stock market progress in Africa. The study recommends that policies that are good to stimulate stock market liquidity, savings, investment, natural resource management and institutional quality are needed in Africa to boost-up stock market development.

Keywords: Stock Market Development; Stock Markets; Determinants; Africa (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-04162-4_26

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031041624

DOI: 10.1007/978-3-031-04162-4_26

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().