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Authors
Advisor(s)
Abstract(s)
This dissertation provides insights on the introduction of private equity capital markets and its effect on economic growth in African countries. We address this issue by focusing on stock exchange markets as the predominant type of new equity markets. The dissertation deep dives into the effects of the implementation of stock markets by focusing on the GDP per capita and on GDP per capita growth. It uses the Diff-in-Diff regression method. The analysis uses a panel data set on 48 Sub-Saharan countries over the time range of 1970-2018. 23 countries are part of the "treated" group, which introduced international stock exchanges, and 25 "untreated" countries serve as control group. Further, I will investigate the impact of new stock exchange markets on each year to follow their introduction until year 10.
The results are rather interesting. Compared to the time period prior to the introduction of stock exchange markets, GDP per capita rises by the amount of 532 US$ (around 40% of the Sub-Saharan average) after the introduction in treated countries. The coefficient is significant on a 5% level. In the 10 years post introduction, the effect is hump-shaped, with effects becoming statistically significant from the first year after implementation and peaking in year 5 and no statistically significant effect from year 6 onwards.
Description
Mestrado em Economia Monetária e Financeira
Keywords
African stock exchange Economic growth Market openness
Pedagogical Context
Citation
Reimers, Max Rene (2020). "How does the development of private equity capital markets affect economic growth in developing countries?". Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestão.
Publisher
Instituto Superior de Economia e Gestão