A regional analysis of institutional framework on capital market behaviour: evidence from Selected African Countries

Abstract

The strategic importance of capital market development in contemporary economic structures cannot be overemphasized. Various documented studies have buttressed the quintessential indispensability of a developed domestic capital market as a springboard from which real national economic growth can be launched. While a host of those studies are focused on developed economies, quite a few others investigate the institutions-capital market performance analysis in developing economies. However, documented studies that investigate regional dynamics (especially in Africa) are rare. Using data generated from various sources from 1980 to 2016 in a series of estimations, this study re-modelled the institutional-capital market development linkage model in Africa. Empirical findings established the role of institutional adequacy, most especially general public management, in the development of capital in Africa, of which the role of efficient macroeconomic management is noteworthy, to capital market efficiency in Africa