What Can Ethiopia Learn from African Countries Stock Market? Frame Work, Experience and Benefit

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\Vhat Can Ethiopia Learn from African co untries Stock Market? Frame Work, Experience and Benefi t Henok Abadi Addi s Ababa University, 2012 This paper aimed to draw lessons what Ethiopia can learn from Afri can countries stock market. Thus the main objective of the study has been focused on examining and assessing lessons regarding framework, experience and benefits of already developed stock markets sampled from j I African co un tries during 1991-20 10. Both descriptive and econometric anal ysis has been adopted. Descriptively different frameworks and expenences of sampled African stock markets has been explored in regard to institutional, traditional and asset pricing characteristics of stock markets. On the other hand, three econometrics models using a panel data model, dynamic panel data model and Umestricted Vector Auto regression (V AR) has been employed to show the cconomic bcncfits of development of stock market on growth in Africa collectively and specifically a simulation in Ethiopia 's growth model. Basically the findings had revealed the fact that stock markets ab ility to enhance the effi ciency of investments and through which its effect extends to growth is highly dependent on its level of effici ency. This was evident from econometric approach where stock market development enhanced investment positi vely but their indirect impact on growth were negatively associated due to stock market variables fluctuation and inefficient operation and management of the market in the sampled African stock markets. Besides advocating the establi shments of new stock market in Ethiopia with efficient institutional formati on, maintaining sustainable boost in stock market variables and improving way of operating the markets successively were recommended to enhance growth through stock market development



Ethiopia Learn from African Countries Stock Market