Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries
The paper examines the long run effects of interest rate liberalization and institutional quality on the development of stock market in seven selected sub-Saharan African countries using panel dataset that spans 1990 to 2013. The study employs dynamic heterogeneous panel method using the technique...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2016-04-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/1967 |
| _version_ | 1797911547130937344 |
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| author | Wakilat Olabisi Balogun Jauhari B. Dahalan Sallahuddin B. Hassan |
| author_facet | Wakilat Olabisi Balogun Jauhari B. Dahalan Sallahuddin B. Hassan |
| author_sort | Wakilat Olabisi Balogun |
| collection | DOAJ |
| description |
The paper examines the long run effects of interest rate liberalization and institutional quality on the development of stock market in seven selected sub-Saharan African countries using panel dataset that spans 1990 to 2013. The study employs dynamic heterogeneous panel method using the technique of Pooled Mean Group (PMG). The results reveal that on the average liberalizing the interest rates has a negative long run impact on the development of the stock markets in the seven selected SSA economies. Institutional quality on the other hand has significant positive relationship with the development of stock market. The policy recommendation as a result of this finding is that liberalization of interest rates in the SSA region should be a guided one.
Keywords: Interest rate, institutional quality, stock market development.
JEL Classifications: F35, F65, G15.
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| first_indexed | 2024-04-10T11:42:26Z |
| format | Article |
| id | doaj.art-e75a618a6a024d3196c20ffdffee8804 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:42:26Z |
| publishDate | 2016-04-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-e75a618a6a024d3196c20ffdffee88042023-02-15T16:17:31ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-04-0162Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African CountriesWakilat Olabisi Balogun0Jauhari B. DahalanSallahuddin B. HassanUniversiti utara Malaysia The paper examines the long run effects of interest rate liberalization and institutional quality on the development of stock market in seven selected sub-Saharan African countries using panel dataset that spans 1990 to 2013. The study employs dynamic heterogeneous panel method using the technique of Pooled Mean Group (PMG). The results reveal that on the average liberalizing the interest rates has a negative long run impact on the development of the stock markets in the seven selected SSA economies. Institutional quality on the other hand has significant positive relationship with the development of stock market. The policy recommendation as a result of this finding is that liberalization of interest rates in the SSA region should be a guided one. Keywords: Interest rate, institutional quality, stock market development. JEL Classifications: F35, F65, G15. https://econjournals.com/index.php/ijefi/article/view/1967 |
| spellingShingle | Wakilat Olabisi Balogun Jauhari B. Dahalan Sallahuddin B. Hassan Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries International Journal of Economics and Financial Issues |
| title | Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries |
| title_full | Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries |
| title_fullStr | Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries |
| title_full_unstemmed | Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries |
| title_short | Interest Rate Liberalization, Quality institutions and Stock Market Development in Selected Sub-Saharan African Countries |
| title_sort | interest rate liberalization quality institutions and stock market development in selected sub saharan african countries |
| url | https://econjournals.com/index.php/ijefi/article/view/1967 |
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