The Causal Relationship between the Bond Market Development and Economic Growth in Africa: Case Study of South Africa

Authors

  • F. Kapingura University of Fort Hare, East London Campus
  • P. Makhetha-Kosi University of Fort Hare, East London Campus

Abstract

The paper empirically examines the causal relationship between bond market development and economic growth in Africa with South Africa as a case study over a period from 1995 to 2012. Quarterly data applying the Engle Granger cointegration method and the pairwise granger causality test was used. Empirical results reveal that there is a relationship between economic activity and bond market capitalization. Our results imply that African governments should put in place policies which will promote the development of the bond market as one of the ways to mobilise domestic resources and promote economic growth.

DOI: 10.5901/mjss.2014.v5n3p126

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Published

2014-03-05

Issue

Vol. 5 No. 3 (2014): March 2014

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

The Causal Relationship between the Bond Market Development and Economic Growth in Africa: Case Study of South Africa. (2014). Mediterranean Journal of Social Sciences, 5(3), 126. https://www.richtmann.org/journal/index.php/mjss/article/view/2125