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

2Shanghai University of Finance and Economics, School of Finance, Shanghai, China 

Accepted 19 May 2014 



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

Original Research Articles
Impact of Contributory Pension Scheme on Economic Growth in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. September 2015 Vol: 4(8): - [Abstract] [Full Text - PDF] (97 KB)
NJIMANTED Godfrey Forgha, NGWENGEH Brendaline Beloke, Mbohjim Othniel MOBIT
An Assessment of the Determinants of Financial Market Development in Cameroon
Glo. Adv. Res. J. Manage. Bus. Stud. March 2016 Vol: 4(1): - [Abstract] [Full Text - PDF] (162 KB)
Afaf S. Altalhi; Aziza M. Hassan; Shatha Dhaifallah Al-Harthi and Fatima Sulaiman Al-harbi
Wild Olive Leaf Extracts Up regulate Insulin-signaling Gene Expression in Diabetic mice
Glo. Adv. Res. J. Manage. Bus. Stud. April 2018 Vol: 7(4): - [Abstract] [Full Text - PDF] (281 KB)
Alexandre da Silva de Oliveira
An essay on floating exchange rate policy in Brazil
Glo. Adv. Res. J. Manage. Bus. Stud. December 2017 Vol: 5(1): - [Abstract] [Full Text - PDF] (197 KB)
Manelle Lahdhiri, Asma Sghaier, Nizar El Ouni
Comparative Study of the different external sources of financing for development combinations Empirical Validation
Glo. Adv. Res. J. Manage. Bus. Stud. December 2013 Vol: 2(12): - [Abstract] [Full Text - PDF] (149 KB)
Hela Hermassi
Tunisian Revolution and Regional Imbalance
Glo. Adv. Res. J. Manage. Bus. Stud. February 2013 Vol: 2(2): - [Abstract] [Full Text - PDF] (140 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


Viewed 1569
Printed 701
Downloaded 2268
Powered By iPortal Works