Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 May 2014 Vol. 3(5), pp 207-216

Copyright © 2014 Global Advanced Research Journals   

 

Original Research Articles

Stock Market Performance and Economic Growth in Morocco 

Joerg Wild1 and Hind Lebdaoui

1Shanghai University of Finance and Economics, School of Finance, Shanghai, China joerg.wild@gmail.com

2Shanghai University of Finance and Economics, School of Finance, Shanghai, China hind.encg@gmail.com 

Accepted 19 May 2014 

 

Abstract 

This paper explores the relationship between stock market development and economic growth in Morocco for the period from 2000 to 2013 on quarterly basis. As proxies for stock market development, we choose the Morocco All Shares Index (MASI), market liquidity, market capitalization and a principal component analysis based stock market development index. After testing for cointegration, the dynamic interactions between GDP growth and stock market development are investigated using both vector error correction model (VECM) and Granger-causality techniques. The results show that long run association exists between stock market development and economic growth, and unidirectional Granger-causalities running from MASI, traded volume and stock market index to the real GDP exist, but no evidence is confirmed for a Granger-causality from the capitalization to the real GDP. The VECM revealed the presence of adjustment mechanisms for the stock market in the long run; deviations from the equilibrium are corrected in the case of market capitalization and the stock market development composite at 1.2% and 0.4% on a yearly basis. The results provide evidence of the demand-following hypothesis and suggest the presence of threshold level before a positive interaction between the real and financial sectors takes effect. 

Keywords: Morocco, stock market, economic growth, Granger-causality, cointegration, VECM.

Related Articles


Review
Olumide S Ayodele, Frances N Obafemi and Friday S Ebong
Challenges facing the achievement of the Nigeria vision 20:2020
Glo. Adv. Res. J. Manage. Bus. Stud. July 2013 Vol: 2(7): - [Abstract] [Full Text - PDF] (1,100 KB)
Original Research Articles
Umiyati Idris
Empowerment: Strategic Solutions to Realize Farmers Self- Reliance, Farming Scale and Sustainable Prosperity (Survey on Paddy Farmers in South Sumatera-Indonesia)
Glo. Adv. Res. J. Manage. Bus. Stud. March 2016 Vol: 5(3): - [Abstract] [Full Text - PDF] (215 KB)
Sudhanva V. Char
Distributive justice: Cognitive Preferences and Jarring Priorities
Glo. Adv. Res. J. Manage. Bus. Stud. May 2016 Vol: 4(3): - [Abstract] [Full Text - PDF] (523 KB)
Youssef El Hani, Najat Mahassini, Leila Radi and Abdelkarim Filali-Maltouf
Assessment and chemical risk management in healthcare establishments «case of a laboratory of anatomy and pathological cytology»
Glo. Adv. Res. J. Manage. Bus. Stud. December 2016 Vol: 5(12): - [Abstract] [Full Text - PDF] (262 KB)
Tchalim Tom-Irazou
Identifying Opportunities in Togo’s Agriculture: Case of the Savannah Region
Glo. Adv. Res. J. Manage. Bus. Stud. July 2015 Vol: 4(7): - [Abstract] [Full Text - PDF] (165 KB)
Nwite
Implications of Small And Medium Enterprises on South East Development in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. December 2014 Vol: 3(12): - [Abstract] [Full Text - PDF] (272 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Joerg Wild on Google Scholar
Joerg Wild on Pubmed
Hind Lebdaoui on Google Scholar
Hind Lebdaoui on Pubmed

Statistics

Viewed 2030
Printed 767
Downloaded 2514
Powered By iPortal Works