Securities Market Development and Economic growth in the common market for Eastern and Southern Africa Member States

Abstract

Purpose:The purpose of this paper is to investigatethe effect of securities markets development on the economic growth of the Common Markets for Eastern and Southern Africa (COMESA)member states. Design/Methodology:Thestudy was structured as a longitudinal study using a causal research design focusing on the study period from 2005 to2020. The studysubjectedpanel data fromnine (9) COMESA member states topooled OLS as our estimator. Findings:The study findings showthat securities market development positively influenced the economic growth of COMESA member states.The studyconclude that securities markets developmentis a strong macroeconomic factor that can be used by the member states to directly determine the level of economic growth. Originality/Value: The study contributes to knowledge inproviding evidence on the influence of securities markets developmenton the economic growthof COMESA member states considering that there is limited empirical evidence in the finance literaturein this area. Implication to Policy:The studyrecommendsthat COMESA member states should put more focus and measures in place aimed at making the securities market moreefficient and attractive toinvestorsto augment economic growth within thetrading bloc