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Understanding the Growth of African Financial Markets

Aug 01, 2009 | M. Andrianaivo, C.A. Yartey | IMF
This paper examines empirically the determinants of financial market development in Africa with an emphasis on banking systems and stock markets. The results show that income level, creditor rights protection, financial repression, and political risk are the main determinants of banking sector development in Africa, and that stock market liquidity, domestic savings, banking sector development, and political risk are the main determinants of stock market development.