Stock Market Development in Sub-Saharan Africa: Critical Issues and Challenges

By C. Adjasi, Charles Amo Yartey. Social Science Research Network, 2007

328 citations recorded by the source corpus.

This paper examines the economic importance of stock markets in Africa. It discusses policy options for promoting the development of the stock market in Africa. The results of the paper show that the stock markets have contributed to the financing of the growth of large corporations in certain African countries. An econometric investigation of the impact of stock markets on growth in selected African countries, however, finds inconclusive evidence even though stock market value traded seem to be positively and significantly associated with growth. African stock exchanges now face the challenge of integration and need better technical and institutional development to address the problem of low liquidity. Preconditions for successful regional approaches include the harmonization of legislations such as bankruptcy and accounting laws and a liberalized trade regime. Robust electronic trading systems and central depository systems will be important. Further domestic financial liberalization such as steps to improve the legal and accounting framework, private sector credit evaluation capabilities, and public sector regulatory oversight would also be beneficial.

Subfields: Information Systems

View Paper: https://www.semanticscholar.org/paper/7f5c79868bc33c268d755ba0f49eeeff90bac48d

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Citations in the corpus

Bond Markets in Africa (2013, unknown): “Most of the literature has so far focused on financial development of the banking sector and stock markets (e.g., Detragiache et al., 2005; McDonald and Schumacher, 2007; Yartey and Adjasi, 2007; Andrianaivo and Yartey, 2009; Anayiotos and Toroyan, 2009; Kablan, 2010; and Beck et al., 2011 ).”
Understanding the Growth of African Financial Markets (2009, background): “Such bottlenecks induce inactivity (Yartey and Adjasi, 2007).”
The Determinants of Stock Market Development: The Case for the Nairobi Stock Exchange (2012, background): “Garcia and Liu (1999), Demirguc-Kunt and Levine (1996), Yartey and Adjasi (2007), and many more have analyzed the relationship between financial market development and macroeconomic variables, financial reform, and other country –specific factors, and the relationships among the development of the…”
FDI Flows to Sub-Saharan Africa: The Impact of Finance, Institutions, and Natural Resource Endowment (2012, background): “For inflation, Yartey and Adjasi (2007) and Asiedu (2002) find a negative significant effect and explain it to mean that both domestic and foreign investors will be unwilling to invest in an atmosphere of a high inflation rate.”
Foreign Direct Investment and Stock Market Development: Ghana's Evidence (2008, unknown): “Garcia and Liu (1999), Demirguc-Kunt and Levine (1996), Yartey and Adjasi (2007), and many more have analyzed the relationship between financial market development and macroeconomic variables, financial reform, and other country – specific factors, and the relationships among the development of the…”