Relationship Between Stock Market Capitalization and Economic Growth in Kenya

Abstract

The investigation was done on firms recorded on the Nairobi Securities Trade (NSE) with the goal of discovering how monetary development was influenced by the advancements in the level of market capitalization. This was out of the way that most investigates harped such a great amount on the connection between showcase capitalization and Gross domestic product. Regression display was utilized to examine the connection between financial development, stock market capitalization increase and the control variables. The two key variables were measured by rate monetary development rate and market capitalization separately. The information utilized was gathered from the Capital Market Authority for 11 year period from 2005. The information for financial development for a similar period was got from the database Kenya National Bureau of Statistics and Central Bank of Kenya. Examination of the information uncovered that there was a 0.000356186 relationship between the two factors showing that the two co-moved. The relapse investigation found a powerless positive association with the level of development rate that is autonomous of market capitalization being 5.085%. The variable part had a variety coefficient of 0.00683283266 which is certain.