Stock Market Development, Foreign Private Investment and Economic Growth in Sub-Saharan Africa

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

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