Stock market development, foreign private investment and economic growth in sub-Saharan Africa

Yakubu, Ibrahim Nandom and Bunyaminu, Alhassan and Abdulrahman, Nuhu Alhassan (2022): Stock market development, foreign private investment and economic growth in sub-Saharan Africa. Published in: Empirical Economics Letters , Vol. 21, No. 5 (2022): pp. 37-46.

Abstract

This study investigates the impact of stock market development and foreign private investment on economic growth in Sub-Saharan Africa (SSA) over the period 2000-2017. The study controls for the impact of trade openness and inflation. Using the pooled estimated generalized least squares (EGLS) technique, we establish that there exists a negative relationship between stock market development and economic growth in Sub-Saharan Africa. We note that foreign private investment positively and significantly influences economic growth. The study further reveals that inflation negatively affects growth. We present key implications for policy based on the findings.

• Item Type: MPRA Paper
• Language: English
• Keywords: stock market development; foreign private investment; economic growth; SSA
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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