Banks, stock market and economic growth in Botswana: a time series analysis

dc.contributor.advisorChamisa, Edward
dc.contributor.authorMalebye, Nthabiseng
dc.date.accessioned2022-11-16T09:58:37Z
dc.date.available2022-11-16T09:58:37Z
dc.date.issued2018
dc.date.updated2022-10-27T08:07:20Z
dc.description.abstractThis study examines the relationship between banks, stock market and economic development in Botswana using quarterly data from 1995 to 2016. To find out if there is a link between financial development and economic growth, the three measures of stock market development used are stock market capitalization, total value of shares traded and turnover. For bank-based financial development, the proxy is bank credit to private sector and the measure of economic growth is real gross domestic product (GDP) per capita. To analyse the long run and short run relationships among the variables of interest, this study implements the Autoregressive Distributed Lag (ARDL) cointegration technique and the Granger causality technique to find the direction of causality. The findings indicate that there is a positive short and long run relationship between stock market variables and economic growth when turnover and market capitalization are used as proxies and value traded is significant and negatively related to economic growth. The study found that bank credit to private sector is negatively related to economic growth both in the short and the long run. There is bidirectional causality between stock market financial development and economic growth and no causal relationship between banking financial development and economic growth in Botswana. This study recommends that there should be appropriate reforms to develop the financial sector in Botswana to help promote economic growth. Botswana should also have reforms to promote economic growth to foster stock market financial development. This study also offers a comprehensive and detailed overview of the state of the economy, banking system and the financial markets system of Botswana which can help foreign investors as well as individual and institutional investors in making sound investment decisions.
dc.identifier.apacitationMalebye, N. (2018). <i>Banks, stock market and economic growth in Botswana: a time series analysis</i>. (). ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/36896en_ZA
dc.identifier.chicagocitationMalebye, Nthabiseng. <i>"Banks, stock market and economic growth in Botswana: a time series analysis."</i> ., ,Faculty of Commerce ,Department of Finance and Tax, 2018. http://hdl.handle.net/11427/36896en_ZA
dc.identifier.citationMalebye, N. 2018. Banks, stock market and economic growth in Botswana: a time series analysis. . ,Faculty of Commerce ,Department of Finance and Tax. http://hdl.handle.net/11427/36896en_ZA
dc.identifier.ris TY - Master Thesis AU - Malebye, Nthabiseng AB - This study examines the relationship between banks, stock market and economic development in Botswana using quarterly data from 1995 to 2016. To find out if there is a link between financial development and economic growth, the three measures of stock market development used are stock market capitalization, total value of shares traded and turnover. For bank-based financial development, the proxy is bank credit to private sector and the measure of economic growth is real gross domestic product (GDP) per capita. To analyse the long run and short run relationships among the variables of interest, this study implements the Autoregressive Distributed Lag (ARDL) cointegration technique and the Granger causality technique to find the direction of causality. The findings indicate that there is a positive short and long run relationship between stock market variables and economic growth when turnover and market capitalization are used as proxies and value traded is significant and negatively related to economic growth. The study found that bank credit to private sector is negatively related to economic growth both in the short and the long run. There is bidirectional causality between stock market financial development and economic growth and no causal relationship between banking financial development and economic growth in Botswana. This study recommends that there should be appropriate reforms to develop the financial sector in Botswana to help promote economic growth. Botswana should also have reforms to promote economic growth to foster stock market financial development. This study also offers a comprehensive and detailed overview of the state of the economy, banking system and the financial markets system of Botswana which can help foreign investors as well as individual and institutional investors in making sound investment decisions. DA - 2018_ DB - OpenUCT DP - University of Cape Town KW - Economic growth KW - ARDL model KW - Stock market development KW - Banking development KW - Botswana KW - Financial deve LK - https://open.uct.ac.za PY - 2018 T1 - Banks, stock market and economic growth in Botswana: a time series analysis TI - Banks, stock market and economic growth in Botswana: a time series analysis UR - http://hdl.handle.net/11427/36896 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/36896
dc.identifier.vancouvercitationMalebye N. Banks, stock market and economic growth in Botswana: a time series analysis. []. ,Faculty of Commerce ,Department of Finance and Tax, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/36896en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.subjectEconomic growth
dc.subjectARDL model
dc.subjectStock market development
dc.subjectBanking development
dc.subjectBotswana
dc.subjectFinancial deve
dc.titleBanks, stock market and economic growth in Botswana: a time series analysis
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
thesis_com_2018_malebyenthabiseng.pdf
Size:
1.02 MB
Format:
Adobe Portable Document Format
Description:
License bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
0 B
Format:
Item-specific license agreed upon to submission
Description:
Collections