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Long term effect of liquidity on stock market development

Balogun, Wakilat Olabisi and Dahalan, Jauhari and Hassan, Sallahuddin (2016) Long term effect of liquidity on stock market development. Journal of Economics and Sustainable Development, 7 (4). pp. 40-46. ISSN 2222-1700

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Abstract

The study investigates the long run relationship between stock market liquidity and development of stock market using panel dataset that spans 1990-2013 for seven selected Sub-Saharan African countries.It employs dynamic heterogeneous panel data analysis using the technique of Pooled Mean Group.Liquidity of the stock market is measured by both the stock value traded and turnover ratio.The result of PMG technique shows that there is a long run relationship between stock market liquidity and the development of stock market.It is thus recommended that the policy makers in these countries should design strategy to boost the liquidity of the stock market in order for the stock market to contribute to growth.

Item Type: Article
Uncontrolled Keywords: Liquidity, Mean group, Pooled mean group, Stock market.
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Prof. Dr. Jauhari Dahalan
Date Deposited: 27 Jun 2016 03:46
Last Modified: 27 Jun 2016 03:46
URI: https://repo.uum.edu.my/id/eprint/18243

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