Stock Market
Development and
Economic Growth in
Selected Southern
African Countries.
By: Gaminee Guddoy
TABLE OF CONTENTS
LIST OF TABLES ...................................................................................... I
LIST OF FIGURES ..................................................................................... II
LIST OF ABBREVIATIONS ........................................................................ III
ACKNOWLEDGEMENTS ........................................................................... IV
ABSTRACT ............................................................................................... V
1 INTRODUCTION .................................................................................... 1
1.0 BACKGROUND OF STUDY .................................................................... 1
1.1 THE AIM OF STUDY ............................................................................. 2
1.2 OVERVIEW OF THE DISSERTATION ...................................................... 2
2 LITERATURE REVIEW .......................................................................... 3
2.0 INTRODUCTION .................................................................................. 3
2.1 THEORETICAL REVIEW ....................................................................... 3
2.1.1 FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH ........... 4
2.1.2 INFLATION AND ECONOMIC GROWTH ......................................... 5
2.1.3 STOCK MARKET DEVELOPMENT AND ECONOMIC GROWTH ......... 6
2.1.4 STOCK MARKET LIQUIDITY AND ECONOMIC GROWTH ................ 6
2.1.5 RISK DIVERSIFICATION AND ECONOMIC GROWTH ...................... 7
2.1.6 INFORMATION AGGREGATION IN STOCK MARKETS .................... 7
2.1.7 STOCK MARKET SIZE AND ECONOMIC GROWTH .......................... 8
2.1.8 NO RELATIONSHIP BETWEEN STOCK MARKET
DEVELOPMENT AND ECONOMIC GROWTH .................................. 8
2.2 EMPIRICAL REVIEW...