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ASSESSING THE IMPACT OF STOCK MARKETS ON
FINANCIAL DEVELOPMENT IN SELECTED SUB-
SAHARAN COUNTRIES

Kanfitine Laré-Lantone
Université de Lomé, Togo




ABSTRACT

This paper tests the economic rationalization of six sub Saharan
African stock markets. Gaps in the growth trends of stock markets and banks
activities in Cote d’Ivoire, Ghana, Kenya, Mauritius, and Nigeria over the
period 1982-2008 indicate that contrary to South Africa their stock markets
were not economically rationalized. The empirical testing of the impact model
indicates that they only exerted marginal impact on the national financial
development and that the channels through which they transmitted their
impacts varied by country. Factors accounting for their ill performances
include the fact that they were established at times when the national
economies hadn’t reached their threshold points


Key words:
stock market, impact, banking, financial development, threshold,
economic rational, performance, efficiency, outreach.


JEL Codes:
G14, G15