scholarly journals Economic Growth And Capital Market Development In Nigeria An Appraisal

2018 ◽  
Vol 2 (4) ◽  
pp. 27-38
Author(s):  
Agu Bertram O.
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Market Development

scholarly journals The Effects of Capital Market Development and Foreign Direct Investment on the Entrepreneurial Process and Economic Growth

2018 ◽  
Vol 10 (4) ◽  
pp. 40
Author(s):  
Tékam Oumbé Honoré
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Capital Market ◽  
Direct Investment ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Market Development ◽  
Entrepreneurial Process ◽  
Dynamic Estimation

This article seeks to study the effects of the development of the capital market and foreign direct investment (FDI) in the entrepreneurial process and economic growth. The technical methods used in this study are the panel-based dynamic estimation method of the Generalized Method of Moments (GMM) and the Calderon-Rossell model, in order to assess the relative impact of the development of capital markets on the entrepreneurial process in the CEMAC zone. The results show that capital market and capitalization initiatives can lead to an entrepreneurial process and economic growth in the CEMAC region. In addition, the incidence of corruption, the rule of law and the quality of the regulatory framework are identified as the most important institutional frameworks that determine the attractiveness of CEMAC countries to the inflow of FDI.

scholarly journals A causal relationship between derivatives trading, capital market development and economic growth: Evidence from South Africa

2014 ◽  
Vol 11 (2) ◽  
pp. 688-696 ◽  
Author(s):  
Godfrey Marozva
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Capital Markets ◽  
Capital Market ◽  
Stock Exchange ◽  
Market Development ◽  
Management Tools ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This article is based on empirical research on the relationship between derivatives and capital market development and also between derivatives and economic growth on the Johannesburg Stock Exchange (JSE) for the period between 1994 and 2012. The study employed the Autoregressive Distributed Lag (ARDL)-bound testing approach and the Granger causality tests to examine the linkage between capital market development and derivatives, and the nexus between derivatives and economic growth to capture the short-run and long-run dynamics. The results show that there is a significant relationship between derivatives and capital markets development. Further tests indicated that there is a unidirectional Granger causality running from capital market development to derivatives both in the short run and long run, implying that derivatives do not Granger cause capital market development. Results also revealed that there is no direct linkage between derivatives and economic growth. Based on the research it is recommended that further research should be conducted to investigate how derivatives enhance capital market development through augmentation of liquidity and efficiency, leverage, and reduction of transaction costs through the role of derivatives as risk management tools in capital markets.

scholarly journals Effects of Capital Market Development on the Economic Growth of Nigeria

2021 ◽  
Vol 7 (2) ◽  
pp. 30-46
Author(s):  
Udo Ginikachi Cynthia ◽  
Nwezeaku Nathaniel Chinedum ◽  
Kanu Success Ikechi
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Unit Root Test ◽  
Secondary Data ◽  
Market Development ◽  
Index Number ◽  
Stock Market Development ◽  
Distributed Lag ◽  
Long Run ◽  
The Government

This study examines the effect of capital market development on the economic growth of Nigeria using data on Real Gross Domestic Product as a proxy for economic growth while capital market variables constitute the independent variables. This includes Market Capitalization, All Share Index, Number of Listed Securities and the number of listed companies The study adopted an expost-facto research design which utilized secondary data for the period 1983 -2016. While an Augmented Dickey-Fuller unit root test was used for preliminary analysis; an Autoregressive Distributed Lag (ARDL) was used for the model estimation. .A combination of ARDL bounds test for co-integration, ARDL short and long run error correction models were used for estimation. All the tests helped to confirm the integrity of our models. Findings of the study indicate that, the Number of listed Securities and All Share Index maintained a significant relationship with economic growth in Nigeria both in the short and long runs. Based on the findings of study it was recommended that government should help to remove all impediments to stock market development in the form of tax, legal and regulatory barriers as they act as disincentives to investments in the capital market. Again, government should help to maintain policy consistency in the pursuit of growth in the Nigerian capital market. By so doing, counter developmental policies should not be allowed to crowd out the gains of capital market development and by extension on economic growth in the long run. Lastly the government should find ways and means of boosting the confidence of investors to retain their portfolio investments.

scholarly journals Capital Market Linkage to Economic Growth in Nepal

2020 ◽  
Vol 4 (1) ◽  
pp. 43-56
Author(s):  
Jhabindra Pokharel
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Time Series Data ◽  
Secondary Market ◽  
Market Development ◽  
Series Data ◽  
Individual Investors ◽  
Fair Price ◽  
Market Capitalization ◽  
The Capital Market

This article examines the causal relationship between capital market development and economic growth in Nepal using annual time series data from 1994-2019. Total market capitalization is used as a proxy of secondary market development and the total public issue of securities in a particular year is taken as an indicator of primary market development. Using the Johansen cointegration test and vector error correction method (VECM) in regression analysis, the study reveals that capital markets in Nepal are supporting economic growth through efficient fundraising, efficient allocation of resources, fair price determination and liquidity. The findings from this study conclude that there is a unidirectional causality running from capital market development to economic growth in both the long-run and short-run. However, this study found no support for causality running from economic growth to the capital market. Therefore, the findings from this study recommend policies that increase the reach of the capital market to small and medium enterprises (SMEs) and individual investors. Keywords: capital market, market capitalization, primary market, economic growth, Nepal

scholarly journals The dynamics of capital market development in Zimbabwe

2012 ◽  
Vol 9 (2) ◽  
pp. 355-363
Author(s):  
Kunofiwa Tsaurai ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Stock Market ◽  
Capital Market ◽  
Positive Influence ◽  
Market Development ◽  
Stock Market Development ◽  
Domestic Savings ◽  
Recent Debate

This paper takes stock of the achievements, the trends, as well as the challenges facing the stock market development in Zimbabwe. The study has been motivated by the recent debate on the role of stock market development in economic growth in developing countries. Apart from highlighting the role of stock market development, as well as the efficacy of the stock market in bolstering economic growth in Zimbabwe, the study also pinpoints some of the factors that limit the stock market development in Zimbabwe. The findings of this study show that the experience of Zimbabwe with stock market development, just as in many other developing countries, is mixed. In particular, the positive influence of stock market development on savings and investment remains low in Zimbabwe. While stock market development has been increasing, the country’s gross domestic savings and investment have been low and subsiding. This suggests that Zimbabwe’s gross national savings could be stock market development inelastic.

scholarly journals CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH: AN ARDL APPROACH FOR SAUDI ARABIA, 1985–2018

2020 ◽  
Vol 0 (0) ◽  
pp. 1-22
Author(s):  
Abdulaziz Hamad Algaeed
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Price Index ◽  
Share Price ◽  
Market Development ◽  
Gdp Growth ◽  
Index Number ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Capital Market

The aim of this paper is to analyze and test the effects of capital market development on the per-capita GDP growth in Saudi Arabian economy covering the period of 1985-2018. An ARDL, FMOLS and Johansen tests are implemented. The stock market indicators: share price index, capitalization, liquidity, number of share transactions, and number of shares are employed using a log-linear eclectic model designed to fit the availability of data. Capitalization and liquidity came up with negative signs, contrary to the findings of lots of studies in economic literature. However, the share price index, number of shares traded, and the ratio of number of share transactions had the right signs as expected a priori. The findings raise serious questions about the size of the market, the steps and efforts that have been taken to deepen the capital market and their consequences on the function and potency of capital market in fostering per-capita GDP growth. Applying Granger causality test, share price index, market capitalization and number of shares traded do not granger cause per-capita GDP. They are significant at 5 percent level. Capital market authority (CMA) should draw a road map to accelerate deepening the capital market in order to serve economic growth.

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