Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania
Journal of Finance and Accounting
Volume 4, Issue 6, November 2016, Pages: 321-327
Received: Sep. 19, 2016; Accepted: Oct. 5, 2016; Published: Nov. 17, 2016
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Authors
Ali Othman Abbas, School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China
Yu Xin Pei, School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China
Zhang Rui, School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China
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Abstract
The objective of the study was to establish relationship between the stock market measures and economic growth in Tanzania. In order to achieve the objective, we need to examine the impact of stock market capitalization, total value of share traded and turnover on Tanzanian economy based on the time series data from 2000 - 2011. The unit root test and wnteestq (Portmanteau) tests were carried out. The findings suggest that Dar-es Salam Stock Exchange (DSE) has no effect on economic growth of Tanzania. We recommended that Tanzania government should establish financial policies, in order to encourage companies develop financial stock market culture, and enhance to push companies to initiate Initial Public Offering (IPO) instead of bank loans when money is needed to increase their investment.
Keywords
Market Capitalization Ratio, GDP Growth, Total Value of Shares Traded Ratio, Turnover Ratio
To cite this article
Ali Othman Abbas, Yu Xin Pei, Zhang Rui, Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania, Journal of Finance and Accounting. Vol. 4, No. 6, 2016, pp. 321-327. doi: 10.11648/j.jfa.20160406.12
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Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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