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

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  • Yakubu, Ibrahim Nandom
  • Bunyaminu, Alhassan
  • Abdulrahman, Nuhu Alhassan

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.

Suggested Citation

  • Yakubu, Ibrahim Nandom & Bunyaminu, Alhassan & Abdulrahman, Nuhu Alhassan, 2022. "Stock market development, foreign private investment and economic growth in sub-Saharan Africa," MPRA Paper 115184, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115184
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    References listed on IDEAS

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    More about this item

    Keywords

    stock market development; foreign private investment; economic growth; SSA;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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