Acta Universitatis Danubius. Œconomica, Vol 12, No 4 (2016)

ICT and Stock Market Nexus in Africa: Evidence from Nigeria and South Africa

Andy Titus Okwu


Several studies have examined ICT in relation to stock market development, economic growth and development and other macroeconomic variables. Most of the studies have been on the developed and emerging economies. Studies have been relatively scanty for the developing economies, especially Sub-Saharan Africa. Thus, knowledge gap has been identified in the literature for the African Continent. Pooled data were used in this paper  to spur further studies on financial markets in Africa. This paper employed data on functional models adapted from Gompertz curve model for technology diffusion to investigate the effects of ICT on market outcomes of two leading stock exchange markets in Africa during the 1995-2015 periods. Results showed mixed effects of most ICT metrics and moderating variables in the study. Specifically, the effect of mobile telephone on all market indicators was positive and significant. Further, aggregate effect of the ICT proxies and moderating variables on all market indices was statistically significant. The ICT proxies accounted for positive dynamics in market outcomes, market operations and, thus, sine quo non to growth and development of the markets and financial sectors in the Continent. Therefore, more investments in ICT wares and innovation by the stock exchanges and financial sectors in Africa were recommended.


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