摘要：This study examines the causal relationship between stock market development and economic growth for the Sudanese economy based on time series data for the period 1995-2009. The study uses the Granger causality approach based on the classical unit root tests. It provides a theoretical basis for establishing the channel through which stock markets affect economic growth in the long run. The empirical results of the study show that the causal relationship between stock market development and economic growth is sensitive to the proxy used for describing the stock market development. When the stock market capitalization is used, the results indicate a bidirectional causal relationship between stock market development and economic growth. However, when the stock market liquidity is used, the results show unidirectional causal relationship from economic growth to stock market development. The overall conclusion is that, Granger causality test results suggest that stock market development in Sudan leads to economic growth at least for the period under study, which is in line with the ‘supply leading’ hypotheses.
关键词：Stock Market Development; Economic Growth; Unit Root; Causality Test; Sudan
