Stock Market Development and Economic Growth: New Evidence from South Africa

This Paper Examines The Relationship Between Stock Market Development And Economic Growth In South Africa. The Paper Employs Auto-Regressive Distributed Lags (ARDL)-Bounds Testing Approach And MultiDimensional Stock Market Development Proxies To Examine This Relationship. The Paper Finds That In The Long Run, Stock Market Development Has Minimal Impact On Economic Growth. However, Stock Market Development Has Some Short-Run Impact On Economic Growth In South Africa. The Paper, Therefore, Concludes That It Is Rather The Increase In Credit To The Private Sector And An Increase In The Gross National Expenditure That Drives The Real Sector Development And Economic Growth In South Africa.

keywords: Economic Growth; Stock Market Development; Ardl-Bounds Testing Approach; South Africa.