Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius
<p>Stock market development is now well known for the role that it plays in generating gains in terms of economic growth. It has therefore become very important to now scrutinize the main driving forces which actually cause the expansion of stock market development. To do so, the paper scrut...
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| Format: | Article |
| Language: | English |
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EconJournals
2019-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/8125 |
| _version_ | 1797917297658036224 |
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| author | Jeevita Matadeen |
| author_facet | Jeevita Matadeen |
| author_sort | Jeevita Matadeen |
| collection | DOAJ |
| description | <p>Stock market development is now well known for the role that it plays in generating gains in terms of economic growth. It has therefore become very important to now scrutinize the main driving forces which actually cause the expansion of stock market development. To do so, the paper scrutinizes the both the macroeconomic and institutional determinants of stock market development in Mauritius during the period 1989-2016 through a dynamic VECM. The results indicate that macroeconomic factors such as economic growth, banking sector development, stock market liquidity and gross fixed capital formation are important drivers of stock market development in the island. Additionally, political stability, rule of law, government effectiveness, voice accountability and control of corruption also play a key role in terms of enhancing stock market development.</p><p><strong>Keywords:</strong> Macroeconomic Determinants, Institutional Determinants, Stock market development, VECM, Cointegration</p><p><strong>JEL Classifications</strong>: E17, G1, G2</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.8125">https://doi.org/10.32479/ijefi.8125</a></p> |
| first_indexed | 2024-04-10T13:11:05Z |
| format | Article |
| id | doaj.art-0f4152d714984522812ad7cbfe5a0b24 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:11:05Z |
| publishDate | 2019-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-0f4152d714984522812ad7cbfe5a0b242023-02-15T16:12:37ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382019-07-01941972024040Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in MauritiusJeevita Matadeen0University of Mauritius<p>Stock market development is now well known for the role that it plays in generating gains in terms of economic growth. It has therefore become very important to now scrutinize the main driving forces which actually cause the expansion of stock market development. To do so, the paper scrutinizes the both the macroeconomic and institutional determinants of stock market development in Mauritius during the period 1989-2016 through a dynamic VECM. The results indicate that macroeconomic factors such as economic growth, banking sector development, stock market liquidity and gross fixed capital formation are important drivers of stock market development in the island. Additionally, political stability, rule of law, government effectiveness, voice accountability and control of corruption also play a key role in terms of enhancing stock market development.</p><p><strong>Keywords:</strong> Macroeconomic Determinants, Institutional Determinants, Stock market development, VECM, Cointegration</p><p><strong>JEL Classifications</strong>: E17, G1, G2</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.8125">https://doi.org/10.32479/ijefi.8125</a></p>https://www.econjournals.com/index.php/ijefi/article/view/8125 |
| spellingShingle | Jeevita Matadeen Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius International Journal of Economics and Financial Issues |
| title | Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius |
| title_full | Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius |
| title_fullStr | Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius |
| title_full_unstemmed | Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius |
| title_short | Stock Market Development: An Assessment of its Macroeconomic and Institutional Determinants in Mauritius |
| title_sort | stock market development an assessment of its macroeconomic and institutional determinants in mauritius |
| url | https://www.econjournals.com/index.php/ijefi/article/view/8125 |
| work_keys_str_mv | AT jeevitamatadeen stockmarketdevelopmentanassessmentofitsmacroeconomicandinstitutionaldeterminantsinmauritius |