Effect of stock market development on long-run economic growth-case of South Africa
type: CreativeWork
description: This paper examines the long-run causal relationship between stock market development (Johannesburg Stock Exchange) and economic growth in South Africa by making use of the Autoregressive Distributed Lag Bounds method. The study also reviews South Africa's economic growth trajectory using World Bank data sets over the period between 1975 and 2013. Stock market development is proxied by stock market capitalization, stock market value traded and stock market turnover and economic growth is represented by gross domestic product (GDP). The study is predicated on the the puzzle of why there is such a large disparity between the economic growth rate experienced by South Africa and its peers in spite of South Africa having a world leading stock market in the form of the Johannesburg Stock Exchange? The study presupposes that a causal relationship between stock market development and economic growth exists in South Africa and questions why the effects thereof are not more emphatic. The purpose of the study is to seek answers to the question of whether there is a significant and positive correlation between the development of the Johannesburg Stock Exchange and economic growth in post-apartheid South Africa. The study would also examine and describe the economic growth trajectory of South Africa look prior to 1994 and post 1994. The study makes use of annual time series data, which covers the period from 1975 to 2013 obtained from different sources, including South African Reserve Bank annual reports, quarterly bulletins, International Financial Statistics (IFS) from the International Monetary Fund and World Bank Statistical Yearbook. In addition, data on real GDP growth rate for South Africa was obtained from Statistics South Africa whilst the Johannesburg Stock Exchange's stock market capitalization and total value of stocks traded was obtained from the Johannesburg Stock Exchange website, turnover ratio of stocks traded was calculated. To accomplish the goal of this study…
abstract: This paper examines the long-run causal relationship between stock market development (Johannesburg Stock Exchange) and economic growth in South Africa by making use of the Autoregressive Distributed Lag Bounds method. The study also reviews South Africa's economic growth trajectory using World Bank data sets over the period between 1975 and 2013. Stock market development is proxied by stock market capitalization, stock market value traded and stock market turnover and economic growth is represented by gross domestic product (GDP). The study is predicated on the the puzzle of why there is such a large disparity between the economic growth rate experienced by South Africa and its peers in spite of South Africa having a world leading stock market in the form of the Johannesburg Stock Exchange? The study presupposes that a causal relationship between stock market development and economic growth exists in South Africa and questions why the effects thereof are not more emphatic. The purpose of the study is to seek answers to the question of whether there is a significant and positive correlation between the development of the Johannesburg Stock Exchange and economic growth in post-apartheid South Africa. The study would also examine and describe the economic growth trajectory of South Africa look prior to 1994 and post 1994. The study makes use of annual time series data, which covers the period from 1975 to 2013 obtained from different sources, including South African Reserve Bank annual reports, quarterly bulletins, International Financial Statistics (IFS) from the International Monetary Fund and World Bank Statistical Yearbook. In addition, data on real GDP growth rate for South Africa was obtained from Statistics South Africa whilst the Johannesburg Stock Exchange's stock market capitalization and total value of stocks traded was obtained from the Johannesburg Stock Exchange website, turnover ratio of stocks traded was calculated. To accomplish the goal of this study…
author: Tinavapi, Cuthbert Tafadzwa
language: eng
date published: 2017
date modified: 2026-07-22T22:23:00Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Research of GSB

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/25492