Stock market development and economic growth - evidence from Kenya
Date
2015-11
Authors
Macharia, Lisa
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The main purpose of this study was to explore the relationship between the stock market development and economic growth by establishing a causal link between them using annual time series data for the period 1990 to 2014. The study utilized econometric techniques such as Unit Root Tests, Vector Auto-regressive model and Granger Causality Tests. The empirical results did not show a direct link between economic growth and the stock market. However, they showed that foreign direct investment granger causes the stock market variables and therefore has an impact on the growth in size and liquidity of the Kenyan stock market.
Description
Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Business Science in Financial Economics at Strathmore University
Keywords
Economic Growth, Stock Market Development, Granger Causality, Vector Autoregression