Journal of Finance and Accounting

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Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania

Received: 19 September 2016    Accepted: 05 October 2016    Published: 17 November 2016
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Abstract

The objective of the study was to establish relationship between the stock market measures and economic growth in Tanzania. In order to achieve the objective, we need to examine the impact of stock market capitalization, total value of share traded and turnover on Tanzanian economy based on the time series data from 2000 - 2011. The unit root test and wnteestq (Portmanteau) tests were carried out. The findings suggest that Dar-es Salam Stock Exchange (DSE) has no effect on economic growth of Tanzania. We recommended that Tanzania government should establish financial policies, in order to encourage companies develop financial stock market culture, and enhance to push companies to initiate Initial Public Offering (IPO) instead of bank loans when money is needed to increase their investment.

DOI 10.11648/j.jfa.20160406.12
Published in Journal of Finance and Accounting (Volume 4, Issue 6, November 2016)
Page(s) 321-327
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Market Capitalization Ratio, GDP Growth, Total Value of Shares Traded Ratio, Turnover Ratio

References
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[9] Ejibola, E. (2009), “Stock Market Development and Economic Growth: Evidence from Seven Sub-Sahara African Countries”, Journal of Economics & Business, Vol.61 (2), 162-171.
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[13] Kamuzora, Adam J, F (2013). Research Methods for Business and Social Studies, Morogoro: Mzumbe Book Project Tanzania.
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[19] Obiyo, O. C, (2011). The impact of stock market operations on the Nigerian economy. Department of Accounting, Faculty of Management Sciences, University of Portharcourt, Nigeria.
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Author Information
  • School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China

  • School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China

  • School of Accountancy, Jiangxi University of Finance and Economics, Nanchang, China

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  • APA Style

    Ali Othman Abbas, Yu Xin Pei, Zhang Rui. (2016). Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania. Journal of Finance and Accounting, 4(6), 321-327. https://doi.org/10.11648/j.jfa.20160406.12

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    ACS Style

    Ali Othman Abbas; Yu Xin Pei; Zhang Rui. Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania. J. Finance Account. 2016, 4(6), 321-327. doi: 10.11648/j.jfa.20160406.12

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    AMA Style

    Ali Othman Abbas, Yu Xin Pei, Zhang Rui. Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania. J Finance Account. 2016;4(6):321-327. doi: 10.11648/j.jfa.20160406.12

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  • @article{10.11648/j.jfa.20160406.12,
      author = {Ali Othman Abbas and Yu Xin Pei and Zhang Rui},
      title = {Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania},
      journal = {Journal of Finance and Accounting},
      volume = {4},
      number = {6},
      pages = {321-327},
      doi = {10.11648/j.jfa.20160406.12},
      url = {https://doi.org/10.11648/j.jfa.20160406.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20160406.12},
      abstract = {The objective of the study was to establish relationship between the stock market measures and economic growth in Tanzania. In order to achieve the objective, we need to examine the impact of stock market capitalization, total value of share traded and turnover on Tanzanian economy based on the time series data from 2000 - 2011. The unit root test and wnteestq (Portmanteau) tests were carried out. The findings suggest that Dar-es Salam Stock Exchange (DSE) has no effect on economic growth of Tanzania. We recommended that Tanzania government should establish financial policies, in order to encourage companies develop financial stock market culture, and enhance to push companies to initiate Initial Public Offering (IPO) instead of bank loans when money is needed to increase their investment.},
     year = {2016}
    }
    

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    T1  - Impact of Stock Market on Economic Growth Evidence: Dar-es Salaam Stock Exchange - Tanzania
    AU  - Ali Othman Abbas
    AU  - Yu Xin Pei
    AU  - Zhang Rui
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    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    EP  - 327
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20160406.12
    AB  - The objective of the study was to establish relationship between the stock market measures and economic growth in Tanzania. In order to achieve the objective, we need to examine the impact of stock market capitalization, total value of share traded and turnover on Tanzanian economy based on the time series data from 2000 - 2011. The unit root test and wnteestq (Portmanteau) tests were carried out. The findings suggest that Dar-es Salam Stock Exchange (DSE) has no effect on economic growth of Tanzania. We recommended that Tanzania government should establish financial policies, in order to encourage companies develop financial stock market culture, and enhance to push companies to initiate Initial Public Offering (IPO) instead of bank loans when money is needed to increase their investment.
    VL  - 4
    IS  - 6
    ER  - 

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