Investigating the Nexus between Institutional Quality and Stock Market Development in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach

2017 ◽  
Vol 29 (2) ◽  
pp. 272-292 ◽  
Author(s):  
Charles O. Manasseh ◽  
Timothy E. Mathew ◽  
Jonathan E. Ogbuabor
Keyword(s):  
Stock Market ◽  
Institutional Quality ◽  
Market Development ◽  
Stock Market Development ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach

scholarly journals Long and Short Run Relationship between Stock Market Development and Economic Growth in Nigeria

2019 ◽  
Vol 11 (5(J)) ◽  
pp. 45-53
Author(s):  
Anthony Olugbenga Adaramola ◽  
Modupe F. Popoola
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Market Development ◽  
Stock Market Development ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run ◽  
Market Capitalisation ◽  
Bound Test ◽  
Positive Effect

We examined the long and short run association subsisting between stock market development(market capitalisation, value of transactions, number of deal and all share index), and Nigerian economicgrowth (RGDP) with quarterly data from 1986 to 2017. The Autoregressive Distributed Lag (ARDL) model isapplied for the purpose of estimation. The ARDL bound test result revealed that all the indicators of marketdevelopment exert positive effect on the RGDP in the short run. Further, all the indicators except number ofdeals, have direct and significant relationship with economic growth. Moreover, we find that marketdevelopment causes economic growth. Consequently, we recommend a need for the implementation ofpolicies and procedures capable of enhancing investors’ confidence and boosting market because of theirperceived multiplier impacts on economic growth. Effort should also be focused on the enhancement of stockmarket size which in turn will provide the needed fund for investment and thus resulting in rise in the RGDP.

scholarly journals Reviewing the Equilibrium and Causal Relationships between Stock Market Development and Economic Growth in Jordan

2019 ◽  
Vol 11 (12) ◽  
pp. 37
Author(s):  
Eyad M. Malkawi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Developing Economies ◽  
Market Development ◽  
Causal Relationships ◽  
Stock Market Development ◽  
Ardl Approach ◽  
Show Evidence ◽  
The Relationship

The relationship between stock market development and economic growth has been diversely investigated by many researchers. This paper investigates the equilibrium and causal relationships between stock market development and economic growth in Jordan for the 1980-2018 period. It employs the ARDL approach and the results show evidence of a co-integration and causal relationships between variables. These results are broadly consistent with similar studies carried out for other developing economies.

Stock Market Development and Economic Growth: Empirical Evidence from Nepal

2021 ◽  
pp. 097215092110168
Author(s):  
Jeevan Kumar Bhattarai ◽  
Ramji Gautam ◽  
Keshab Khatri Chettri
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Time Series Data ◽  
Control Variable ◽  
Market Development ◽  
Series Data ◽  
Stock Market Development ◽  
Market Capitalization ◽  
Testing Procedures ◽  
Distributed Lag

This study examines the relationship between stock market development and economic growth in Nepal by employing autoregressive distributed lag (ARDL) model with bound testing procedures. The study period covers annual time series data from 1994 to 2019. Indicators of the stock market development used are size, depth and efficiency represented by market capitalization as a percentage of gross domestic product (GDP), total value of shares traded as a percentage of GDP and total shares traded as a percentage of market capitalization, respectively. Following high correlations among these indicators, an aggregated index is constructed and used in the study. Real GDP per capita growth is taken as an economic growth indicator. The results suggest that there exists a long-run uni-directional causality relationship running from stock market development index to economic growth. Stock market size and liquidity are significant contributors, showing that stock market is able to mobilize capital and diversify risks with increased easiness in trading of stocks. The control variable market inflation shows no significant impact on either of the examined primary variables.

The impact of oil prices on stock market development in Pakistan: Evidence with a novel dynamic simulated ARDL approach

2020 ◽  
pp. 101899
Author(s):  
Muhammad Imran Khan ◽  
Jian-Zhou Teng ◽  
Muhammad Kamran Khan ◽  
Arshad Ullah Jadoon ◽  
Muhammad Fayaz Khan
Keyword(s):  
Stock Market ◽  
Oil Prices ◽  
Market Development ◽  
Stock Market Development ◽  
Ardl Approach ◽  
The Impact

scholarly journals Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

2021 ◽  
Vol 13 (24) ◽  
pp. 13760
Author(s):  
Faheem Ur Rehman ◽  
József Popp ◽  
Ejaz Ahmad ◽  
Muhammad Asif Khan ◽  
Zoltán Lakner
Keyword(s):  
Direct Investment ◽  
Institutional Quality ◽  
New Techniques ◽  
Developed Economies ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
Quality Of Institutions ◽  
Fresh Insight

This study explores the bicausality between institutional quality and FDI inflow both aggregated and sector-wise, i.e., the agricultural, manufacturing, and tertiary sectors in the Indian economy, by applying simulated autoregressive distributed lag (SARDL) dynamic new techniques, an extended variant of orthodox ARDL and NARDL. The study confirms that aggregated and sectorial FDI are enhanced by adequate institutional quality, and similarly, FDI promotes quality institutions. The nexus between institutional quality and FDI inflow is an inspiration for India to compete with developed economies by enhancing its institutional quality. The study observes cointegration and bidirectional causality between institutional quality and aggregated FDI.

scholarly journals FDI, Stock Market Development and Institutional Quality: An African Perspective

2021 ◽  
Vol 12 (5) ◽  
pp. 141
Author(s):  
Patricia Lindelwa Makoni
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Institutional Quality ◽  
Policy Implications ◽  
Market Development ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Stock Market Development ◽  
Negative Effect

This paper empirically sought to establish the existence of relationships between foreign direct investment, stock market development and institutional quality, respectively. The study adopted a multiple regression analysis, using a panel of nine African countries between 2009 and 2016. Using the random effects model, we find that the relationship between foreign direct investment and stock market development is positive and statistically significant. On the other hand, institutional quality reflected a negative effect on FDI inflows, implying that countries with low quality institutions would struggle to attract inward FDI. The policy implications are that host countries’ policy makers should eliminate or reduce any practices that deter foreign direct investments, such as capital controls and risk of expropriation (institutions), while simultaneously improving the domestic financial infrastructure and related regulations.

scholarly journals The quality of institutions and financial development in mena countries: An empirical investigation

2014 ◽  
Vol 4 (4) ◽  
pp. 65-80 ◽  
Author(s):  
Kaouthar Gazdar ◽  
Mondher Cherif
Keyword(s):  
Stock Market ◽  
Financial Development ◽  
Banking Sector ◽  
Institutional Quality ◽  
Market Liquidity ◽  
Market Development ◽  
Stock Market Development ◽  
Mena Countries ◽  
Banking Sector Development ◽  
The Impact

This paper provides new evidence that sheds light on the influence of institutional quality on financial development using data from Middle East and North African (MENA) countries over the period of 1984-2007. To measure institutional quality we construct a yearly composite index (INST) using the International Country Risk Guide’s (ICRG). The results of both panel data and IV techniques of estimation show that the institutional quality is more relevant for banking sector than for stock market development. Examining the impact of five sub-indicators of the composite ICRG index on financial sector development, we find that some institutional aspects matter more than others do. While law and order are the most relevant determinant of banking sector development, corruption and investment profile are of secondary importance for banking sector development. We also find that, investment profile is the most relevant determinant of stock market development. It has a positive significant effect on market index and stock market liquidity.

Sign in / Sign up

Export Citation Format

Share Document