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The impact of stock market development on economic growth in Morocco: An analysis using the VAR approach

Authors: EL YAMANI, Rachida;

The impact of stock market development on economic growth in Morocco: An analysis using the VAR approach

Abstract

The determination of the factors that can stimulate economic growth has been important, and given the importance of the stock market in economic development, a serval researches are interested in the analysis of the relationship between stock market development and economic growth. The studies have confirmed that the economic growth, in a nation, is positively impacted by the stock market development. As a developing country, Morocco is looking for a development model that will allow it to ensure a durable economic growth. This paper seeks to examine the link between stock market development and economic growth In Morocco, using time-series data sourced from the Central Bank of Morocco covering the period of 2008-2021, with a quarterly frequency, and using the vector autoregressive (VAR) approach to estimate the results. The capitalization and liquidity are used as stock market indicators. The results of the study show that the coefficient of the capitalization has a positive sign but for the liquidity it has a negative sign. In the other hand, for the control variables, the coefficient of the inflation rate has a positive sign but that of the real effective exchange has a negative sign. Keywords: Stock market, Capitalization, Liquidity, Economic growth, VAR, Morocco. JEL Classification : E44 Paper type : Empirical research

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Stock market, Capitalization, Liquidity, Economic growth, VAR, Morocco

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This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
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