Capital market and economic development of emerging economies: Nigeria, South Africa and Kenya
| dc.contributor.author | Mpamugo, Chikwendu Samuel | |
| dc.date.accessioned | 2026-03-17T12:12:31Z | |
| dc.date.available | 2026-03-17T12:12:31Z | |
| dc.date.issued | 2021-09 | |
| dc.description | This thesis is for the award of Doctor of Philosophy (Ph.D) in Financial Management Technology | |
| dc.description.abstract | The effect of capital market on the development of emerging economies of Nigeria, South Africa and Kenya was examined in this study. The study was necessitated by the apparent sluggish economic development in the selected countries as evidenced from apparent low GDP growth rate, low level of industrialization, high rate of unemployment, poor educational and health facilities as well as low level of infrastructural development in spite of the level of capitalization of their capital markets over the years and the apparent huge amounts of money that have been spent to enhance the functioning of the markets. The aim of the study therefore, is to ascertain the extent to which the capital market affects economic development in these countries. The study relied mainly on secondary data for the analysis and covered the period 1990 to 2018. To avoid spurious regression, the Stationarity test by Dickey-Fuller was used. The test for co-integration by Johansen and the error correction model were also used in the analysis while the direction of causation was determined using the granger test for causality. Panel data (pooled) regression analysis was also carried out. Findings revealed among others, that the relationship between market capitalization and human development index was positive and insignificant for both Nigeria and South Africa but, negative and insignificant in Kenya. For the securities traded value and economic development, the relationship was positive and significant in Nigeria, positive and significant in South Africa, positive and significant in Kenya. However, the result of panel data (pooled) regression analysis revealed that HDI is a positive and significant function of capital market variables in all the countries except value of securities traded that has negative but insignificant effect on HDI. Based on the findings, the conclusion was that capital market had weak impact on the economy of the affected countries given the low values of the estimated coefficients and high transaction and information costs, interference with stock prices and loss of investors’ confidence could be a challenge. Hence, the study recommends that policies be formulated by government and regulatory agencies to ensure the creation of strong and more transparent institutional and legal framework as well as promote investment in human resources to ensure that available financial resources are more efficiently allocated by the stock exchanges. Policies should also be made to encourage companies operating in the domestic economies, including educational and health institutions, to be listed on the domestic stock exchanges. | |
| dc.identifier.citation | Mpamugo, C. S. (2021). Capital market and economic development of emerging economies: Nigeria, South Africa and Kenya [Unpublished Doctoral Thesis]. Federal University of Technology, Owerri, Nigeria | |
| dc.identifier.uri | https://repository.futo.edu.ng/handle/20.500.14562/2398 | |
| dc.language.iso | en | |
| dc.publisher | Federal University of Technology, Owerri | |
| dc.rights | Attribution-NonCommercial-ShareAlike 4.0 International | en |
| dc.rights.uri | http://creativecommons.org/licenses/by-nc-sa/4.0/ | |
| dc.subject | Co-integration | |
| dc.subject | capital market | |
| dc.subject | causality | |
| dc.subject | economic development | |
| dc.subject | correction model | |
| dc.subject | human development index | |
| dc.subject | Department of Financial Management Technology | |
| dc.title | Capital market and economic development of emerging economies: Nigeria, South Africa and Kenya | |
| dc.type | Doctoral Thesis |