National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013)

Joseph Alimamy Thullah

doi:doi:10.11648/j.jwer.20140306.15

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National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013)

Joseph Alimamy Thullah

Published in Journal of World Economic Research (Volume 3, Issue 6)

Received: 29 October 2014 Accepted: 15 November 2014 Published: 27 November 2014

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Abstract

Using both Vector Auto Regression (VAR) and Pooled Least Squares Regression (PLSR) analysis, this paper demonstrated the contributions of a formidable National Stock Exchange (NSE) to national economic development, especially in war-affected and disaster-stricken economies in the Sub-Saharan Africa (SSA). A panel data for thirty (30) SSA economies (1981-2012), comprising of selected macroeconomic variables viz: “Gross Domestic Product (LY_GDP), Economy-wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET)” was used to resolve the question “Does a formidable NSE enhance national economic development ?. Whilst the VAR was used to demonstrated co-movement within the short and long-run dependence, the PLSR technique evaluated structural dynamics amongst the variables; Economy-Wide Stock Capitalization (LY_CAPITA), Economy-wide Stock Monetization (LY_MONET) and Economic Growth (LY_GDP). The changes in GDP was proxied national economic development, whilst, the changes in Economy-Wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET) surrogated NSE activities. Both the VAR and PLSR affirmed a positive relationship between economic growth (LY_GDP) and the variables Nation-wide Market Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET). We therefore imply that, Nation-Wide Market Capitalization (LY_CAPITA) and Economy-Wide Monetization (LY_MONET) contributes to national economic development. Hence, we recommend that the “State” as the frontier pusher in any economy to initiate policies that would identify and promote investors’ base, strengthened regulations, and monitors NSEs development within these economies.

Published in	Journal of World Economic Research (Volume 3, Issue 6)
DOI	10.11648/j.jwer.20140306.15
Page(s)	109-118
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

National Exchange, Economy-Wide Stock Market Capitalization, Economy-Wide Monetization and National Economic Development, Pooled Least Squares Regression (PLSR) and Vector Auto Regression (VAR).

References

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Joseph Alimamy Thullah. (2014). National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013). Journal of World Economic Research, 3(6), 109-118. https://doi.org/10.11648/j.jwer.20140306.15

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Joseph Alimamy Thullah. National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013). J. World Econ. Res. 2014, 3(6), 109-118. doi: 10.11648/j.jwer.20140306.15

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AMA Style

Joseph Alimamy Thullah. National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013). J World Econ Res. 2014;3(6):109-118. doi: 10.11648/j.jwer.20140306.15

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@article{10.11648/j.jwer.20140306.15,
  author = {Joseph Alimamy Thullah},
  title = {National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013)},
  journal = {Journal of World Economic Research},
  volume = {3},
  number = {6},
  pages = {109-118},
  doi = {10.11648/j.jwer.20140306.15},
  url = {https://doi.org/10.11648/j.jwer.20140306.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20140306.15},
  abstract = {Using both Vector Auto Regression (VAR) and Pooled Least Squares Regression (PLSR) analysis, this paper demonstrated the contributions of a formidable National Stock Exchange (NSE) to national economic development, especially in war-affected and disaster-stricken economies in the Sub-Saharan Africa (SSA). A panel data for thirty (30) SSA economies (1981-2012), comprising of selected macroeconomic variables viz: “Gross Domestic Product (LY_GDP), Economy-wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET)” was used to resolve the question “Does a formidable NSE enhance national economic development ?. Whilst the VAR was used to demonstrated co-movement within the short and long-run dependence, the PLSR technique evaluated structural dynamics amongst the variables; Economy-Wide Stock Capitalization (LY_CAPITA), Economy-wide Stock Monetization (LY_MONET) and Economic Growth (LY_GDP). The changes in GDP was proxied national economic development, whilst, the changes in Economy-Wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET) surrogated NSE activities. Both the VAR and PLSR affirmed a positive relationship between economic growth (LY_GDP) and the variables Nation-wide Market Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET). We therefore imply that, Nation-Wide Market Capitalization (LY_CAPITA) and Economy-Wide Monetization (LY_MONET) contributes to national economic development. Hence, we recommend that the “State” as the frontier pusher in any economy to initiate policies that would identify and promote investors’ base, strengthened regulations, and monitors NSEs development within these economies.},
 year = {2014}
}

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TY  - JOUR
T1  - National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013)
AU  - Joseph Alimamy Thullah
Y1  - 2014/11/27
PY  - 2014
N1  - https://doi.org/10.11648/j.jwer.20140306.15
DO  - 10.11648/j.jwer.20140306.15
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 109
EP  - 118
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20140306.15
AB  - Using both Vector Auto Regression (VAR) and Pooled Least Squares Regression (PLSR) analysis, this paper demonstrated the contributions of a formidable National Stock Exchange (NSE) to national economic development, especially in war-affected and disaster-stricken economies in the Sub-Saharan Africa (SSA). A panel data for thirty (30) SSA economies (1981-2012), comprising of selected macroeconomic variables viz: “Gross Domestic Product (LY_GDP), Economy-wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET)” was used to resolve the question “Does a formidable NSE enhance national economic development ?. Whilst the VAR was used to demonstrated co-movement within the short and long-run dependence, the PLSR technique evaluated structural dynamics amongst the variables; Economy-Wide Stock Capitalization (LY_CAPITA), Economy-wide Stock Monetization (LY_MONET) and Economic Growth (LY_GDP). The changes in GDP was proxied national economic development, whilst, the changes in Economy-Wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET) surrogated NSE activities. Both the VAR and PLSR affirmed a positive relationship between economic growth (LY_GDP) and the variables Nation-wide Market Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET). We therefore imply that, Nation-Wide Market Capitalization (LY_CAPITA) and Economy-Wide Monetization (LY_MONET) contributes to national economic development. Hence, we recommend that the “State” as the frontier pusher in any economy to initiate policies that would identify and promote investors’ base, strengthened regulations, and monitors NSEs development within these economies.
VL  - 3
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Author Information

Joseph Alimamy Thullah

Lecturer, Department of Economics, Fourah Bay College, USL, Freetown, Sierra Leone

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Joseph Alimamy Thullah. (2014). National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013). Journal of World Economic Research, 3(6), 109-118. https://doi.org/10.11648/j.jwer.20140306.15

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ACS Style

Joseph Alimamy Thullah. National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013). J. World Econ. Res. 2014, 3(6), 109-118. doi: 10.11648/j.jwer.20140306.15

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AMA Style

Joseph Alimamy Thullah. National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013). J World Econ Res. 2014;3(6):109-118. doi: 10.11648/j.jwer.20140306.15

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@article{10.11648/j.jwer.20140306.15,
  author = {Joseph Alimamy Thullah},
  title = {National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013)},
  journal = {Journal of World Economic Research},
  volume = {3},
  number = {6},
  pages = {109-118},
  doi = {10.11648/j.jwer.20140306.15},
  url = {https://doi.org/10.11648/j.jwer.20140306.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20140306.15},
  abstract = {Using both Vector Auto Regression (VAR) and Pooled Least Squares Regression (PLSR) analysis, this paper demonstrated the contributions of a formidable National Stock Exchange (NSE) to national economic development, especially in war-affected and disaster-stricken economies in the Sub-Saharan Africa (SSA). A panel data for thirty (30) SSA economies (1981-2012), comprising of selected macroeconomic variables viz: “Gross Domestic Product (LY_GDP), Economy-wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET)” was used to resolve the question “Does a formidable NSE enhance national economic development ?. Whilst the VAR was used to demonstrated co-movement within the short and long-run dependence, the PLSR technique evaluated structural dynamics amongst the variables; Economy-Wide Stock Capitalization (LY_CAPITA), Economy-wide Stock Monetization (LY_MONET) and Economic Growth (LY_GDP). The changes in GDP was proxied national economic development, whilst, the changes in Economy-Wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET) surrogated NSE activities. Both the VAR and PLSR affirmed a positive relationship between economic growth (LY_GDP) and the variables Nation-wide Market Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET). We therefore imply that, Nation-Wide Market Capitalization (LY_CAPITA) and Economy-Wide Monetization (LY_MONET) contributes to national economic development. Hence, we recommend that the “State” as the frontier pusher in any economy to initiate policies that would identify and promote investors’ base, strengthened regulations, and monitors NSEs development within these economies.},
 year = {2014}
}

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TY  - JOUR
T1  - National Stock Exchanges (NSE) and National Economic Development: A Vector Autoregressive Modelling Approach with Data from Thirty (30) Sub-Saharan Countries (2000-2013)
AU  - Joseph Alimamy Thullah
Y1  - 2014/11/27
PY  - 2014
N1  - https://doi.org/10.11648/j.jwer.20140306.15
DO  - 10.11648/j.jwer.20140306.15
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 109
EP  - 118
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20140306.15
AB  - Using both Vector Auto Regression (VAR) and Pooled Least Squares Regression (PLSR) analysis, this paper demonstrated the contributions of a formidable National Stock Exchange (NSE) to national economic development, especially in war-affected and disaster-stricken economies in the Sub-Saharan Africa (SSA). A panel data for thirty (30) SSA economies (1981-2012), comprising of selected macroeconomic variables viz: “Gross Domestic Product (LY_GDP), Economy-wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET)” was used to resolve the question “Does a formidable NSE enhance national economic development ?. Whilst the VAR was used to demonstrated co-movement within the short and long-run dependence, the PLSR technique evaluated structural dynamics amongst the variables; Economy-Wide Stock Capitalization (LY_CAPITA), Economy-wide Stock Monetization (LY_MONET) and Economic Growth (LY_GDP). The changes in GDP was proxied national economic development, whilst, the changes in Economy-Wide Stock Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET) surrogated NSE activities. Both the VAR and PLSR affirmed a positive relationship between economic growth (LY_GDP) and the variables Nation-wide Market Capitalization (LY_CAPITA) and Economy-Wide Stock Monetization (LY_MONET). We therefore imply that, Nation-Wide Market Capitalization (LY_CAPITA) and Economy-Wide Monetization (LY_MONET) contributes to national economic development. Hence, we recommend that the “State” as the frontier pusher in any economy to initiate policies that would identify and promote investors’ base, strengthened regulations, and monitors NSEs development within these economies.
VL  - 3
IS  - 6
ER  -

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