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Financial Openness and Capital Market Development in Sub-Saharan African Countries

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Financial Openness and Capital Market Development in Sub-Saharan African Countries


Okafor, Martin Emeka | Nwakoby, Clement Ikechukwu Ndukaife | Adigwe, Patrick Kanayo | Ezu, Gideon Kasie



Okafor, Martin Emeka | Nwakoby, Clement Ikechukwu Ndukaife | Adigwe, Patrick Kanayo | Ezu, Gideon Kasie "Financial Openness and Capital Market Development in Sub-Saharan African Countries" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2, February 2021, pp.954-961, URL: https://www.ijtsrd.com/papers/ijtsrd38568.pdf

This study examined the nexus between financial openness and capital market development in Sub-Saharan African Countries for 30 years period ranging from 1990 - 2019. The study proxied financial openness with capital account balance ratio, private capital inflow ratio, number of listed companies, external finance through foreign capital market and per capita income ratio while capital market development was measured with market capitalization ratio. The study employed secondary data collected from World Development Indicators, Securities and Exchange Commission statistical bulletin, and Stock Exchange fact books of the respective countries. The study adopted ex-post facto research design while the time series data were analyzed using descriptive statistics, correlation, unit root test, granger causality test, Johansen co-integration and error correction model via E-Views 10. The result revealed that there is a significant positive relationship between capital account balance ratio and market capitalization ratio in South Africa; no significant relationship between capital account balance ratio and market capitalization ratio in Nigeria; a significant negative relationship between capital account balance ratio and market capitalization ratio in Zimbabwe; a significant positive relationship between private capital inflow ratio and market capitalization ratio in South Africa; a significant positive relationship between private capital inflow ratio and market capitalization ratio in Nigeria; a significant negative relationship between capital account balance ratio and market capitalization ratio in Zimbabwe; a significant positive relationship between number of listed companies and market capitalization ratio in South Africa; a significant positive relationship between number of listed companies and market capitalization ratio in Nigeria; a significant positive relationship between number of listed companies and market capitalization ratio in Zimbabwe; a non-significant negative relationship between external finance through foreign capital market and market capitalization ratio in South Africa; a significant negative relationship between external finance through foreign capital market and market capitalization ratio in Nigeria; a significant positive relationship between external finance through foreign capital market and market capitalization ratio in Zimbabwe; a significant positive relationship between per capita income ratio and market capitalization ratio in South Africa; a significant positive relationship between per capita income ratio and market capitalization ratio in Nigeria; a significant positive relationship between per capita income ratio and market capitalization ratio in Zimbabwe at 5% level of significance respectively.

Financial inclusion; Unbanked; Market capitalization, Share Floatation


IJTSRD38568
Volume-5 | Issue-2, February 2021
954-961
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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