Open AccessTHE IMPACT OF SECURITIES MARKETS ON ECONOMIC GROWTH IN ZIMBABWE
Author(s) -
Wilford Mawanza,
Nkululeko Mpofu,
Silethemba Nyoni
Publication year - 2020
Publication title -
journal of economic info
Language(s) - English
Resource type - Journals
eISSN - 2708-8448
pISSN - 2313-335X
DOI - 10.31580/jei.v7i3.1409
Subject(s) - ordinary least squares , foreign direct investment , economics , broker dealer , foreign exchange , security market , regression analysis , investment (military) , investment banking , monetary economics , financial system , econometrics , macroeconomics , politics , finance , mathematics , statistics , political science , law
The paper examines the impact of securities exchange on economic growth in Zimbabwe for the period 1980 to 2017. The study adopted the endogenous growth model on which magnitude and fluidity of securities were deemed to be the main drivers of the economy. The ordinary least squares regression technique was applied as the main method of analysis and as the maximum likelihood estimator. The findings of the study showed that securities exchange has blended impacts on economic expansion. It was observed that the market size (market capitalisation) and foreign direct investment (FDI) have a significant positive impact on the economic growth.