International Journal of Social Science & Economic Research
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John Bosco Nnyanzi (Ph.D), John Mayanja Bbale (Ph.D), Bruno Yawe (Ph.D), John Mutenyo (Ph.D)

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1*John Bosco Nnyanzi (Ph.D), 2 John Mayanja Bbale (Ph.D), 3Bruno Yawe (Ph.D), 4 John Mutenyo (Ph.D)
1*. School of Economics, Makerere University, P.O Box 7062, Kampala, Uganda, Tel: +256 772 493223
2. School of Economics, Makerere University, P.O BOX 7062, Kampala, Uganda, Tel: +256-706131835
3. School of Economics, Makerere University, P.O.BOX 7062 Kampala, Uganda, Tel: +256-752 574 651
4. School of Economics, Makerere University, P.O.BOX 7062 Kampala, Uganda, Tel: +256-718-504217
*. Corresponding Author

Nnyanzi, John Bosco, et al. "CAPITAL MARKETS AND GROWTH IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES: A SECTORAL ANALYSIS." Int. j. of Social Science and Economic Research, vol. 3, no. 8, Aug. 2018, pp. 4287-4324, Accessed Aug. 2018.
Nnyanzi, J., Bbale, J., Yawe, B., & Mutenyo, J. (2018, August). CAPITAL MARKETS AND GROWTH IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES: A SECTORAL ANALYSIS. Int. j. of Social Science and Economic Research, 3(8), 4287-4324. Retrieved from
Nnyanzi, John Bosco, John Mayanja Bbale, Bruno Yawe, and John Mutenyo. "CAPITAL MARKETS AND GROWTH IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES: A SECTORAL ANALYSIS." Int. j. of Social Science and Economic Research 3, no. 8 (August 2018), 4287-4324. Accessed August, 2018.

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The paper investigates the effect of stock market development on sector-wide GDP using a sample from Sub-Saharan Africa consisting of Botswana, Kenya, Nigeria and South Africa for the period 1992-2014. The overall results based on the Dynamic OLS estimator provide evidence of both stock market size and liquidity in precipitating economic performance. In particular, from a sectoral perspective, the study finds that the largest effect of each of the stock market indicators, apart from the number of listed companies, happens to be in the manufacturing sector followed by the service and mining sectors. We also document a significant effect of the interaction terms involving investment productivity on the one hand and capital account liberalization on the other with stock market development. This is indicative of the important role that these channels play in determining the influence of capital markets on sector-wide GDP growth. Intuitively, policy makers need to give prior consideration to capital formation as well as capital account liberalization if stock market development is to significantly influence sectorwide GDP growth. Our findings are robust to the use of alternative Fully Modified OLS, and the Canonical Cointegration Regression estimators.