Threshold Effect Between Stock Market and Long-term Economic Growth in Côte d’Ivoire

Abstract

This paper provides an empirical assessment of the relationship between stock market development and long-run growth in Côte d’Ivoire over the period 1993-2020. The cointegration results between the variables reveal a long-run relationship between economic growth and its determinants. Furthermore, the results of the quadratic model estimates show a threshold of the level of development that reduces the long-term growth in Côte d’Ivoire. Finally, the results of this study could guide the competent authorities in the elaboration of efficient economic policies to favour the development of the financial market.