The Causal Relationship between the Bond Market Development and Economic Growth in Africa: Case Study of South Africa

F. Kapingura, P. Makhetha-Kosi


The paper empirically examines the causal relationship between bond market development and economic growth in Africa with South Africa as a case study over a period from 1995 to 2012. Quarterly data applying the Engle Granger cointegration method and the pairwise granger causality test was used. Empirical results reveal that there is a relationship between economic activity and bond market capitalization. Our results imply that African governments should put in place policies which will promote the development of the bond market as one of the ways to mobilise domestic resources and promote economic growth.

DOI: 10.5901/mjss.2014.v5n3p126

Full Text: PDF

Licenza Creative Commons
This work is licensed under Creative Commons Attribution 3.0 License.

Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

Copyright © MCSER-Mediterranean Center of Social and Educational Research

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders..