Relationship between stock market performance and economic growth in Kenya
Machuki, Devis M
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The general aim of the research was to determine the link between performance of stocks and growth of economy as measured by the GDP in Kenya. The research did an analysis of stock market factors like; stock market capitalization (MC), stock turnover ratio (STO), stock traded value (TVL), number of listed securities (LS) and stock market index (MI) against the gross domestic product (GDP) which was used as a proxy for economic growth. Studies done on African stock markets portray them to be petite and hindered by various factors like stock market illiquidity. These studies also point out that countries with well-developed financial markets have a better level of per capita income than those with less developed markets. This notion is also confirmed by various theories which state that there is a big role that financial markets (stock markets) play in boosting economic growth through provision of long-term capital for projects and risk diversification.
University of Nairobi
RightsAttribution-NonCommercial-NoDerivs 3.0 United States
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