MACROECONOMIC AND INSTITUTIONAL DETERMINANTS OF STOCK MARKET DEVELOPMENT: THE CASE OF MALAWI STOCK EXCHANGE

Abstract

This study was undertaken to find out if the macroeconomic variables and institutions can account for stock market development and volatility on the Malawi Stock Exchange. The study employs a GARCH (1, 1) model with quarterly data from 1996q4 to 2012q1. The empirical results indicate that macroeconomic variables and institutional factors have significant impact on stock market development and volatility.